- ct-10pv - vt floor stock tax payment voucher

56
DID YOU KNOW . . . You can file your VT income tax returns on-line using software from the major tax preparation companies. Some charges may apply. Some taxpayers may be eligible to file free. Over 40% of all taxpayers filed their income tax returns electronically last year. These taxpayers received confirmation their returns were filed, received their refunds in 5 business days or less, and could choose to deposit the refund directly into their bank accounts. C HANGES F OR 2006 PR OPER T Y T AX AD JUS TMENT C AL CUL A TION uses 2006 household income and the property taxes on the 2006/2007 property tax bill. The adjustment includes school property tax and, if eligible, municipal property tax. PR OPER T Y T AX AD JUS TMENT ELIGIBILIT Y requires the homeowner own and occupy the property as his or her principal residence on April 1, 2007. USING AN INC OME T AX REFUND T O P A Y PR OPER T Y T AXES Taxpayers may designate all or a part of their income tax refund to pay their property taxes. See instructions for Form IN-111, Section 8, Line 33b. ANGEL VENTURE C APIT AL becomes a tax credit instead of a deferral of tax on the capital gain. See instructions for Form IN-119. AMENDED V T INC OME T AX RETURN Taxpayers now have 60 days from notice of an IRS change or filing an amended Federal return to file an amended VT income tax return. APRIL 1 7 , 200 7 DUE D A TE for the Income Tax Return, Income Tax Extension Request, Renter Rebate Claim, Declaration of Vermont Homestead and Property Tax Assistance Claim. April 15th falls on a Sunday in 2007. Federal returns for VT taxpayers are processed at the IRS center in Andover, MA that observes Patriot’s Day on Monday, April 16th. This extends the VT filing due date to April 17th. NEW F ORM HS-122 combines the Declaration of Vermont Homestead and the Property Tax Adjustment Claim and replaces old Forms HS-131, HS-138, and HS-139. NEW DUE D A TE F OR RENTER REBA TE CL AIM AND PR OPER T Y T AX AD JUS TMENT CL AIM is the same due date for the income tax return. Claims may be made up to September 4, 2007; however, late filing penalties apply to property tax adjustment claims. PR OPER T Y T AX AD JUS TMENT goes directly to the municipality as a credit towards the 2007/2008 property tax bill. Homeowners receive a property tax bill for the balance. Adjustment credits go to the municipality on July 1st for claims filed by April 17th. Claims made between April 18th and September 4th are sent to the municipality September 15th. MAXIMUM 200 7 PR OPER T Y T AX AD JUS TMENT is $10,000. HOUSEHOLD INC OME C HANGES: Include amount over $6,500 of cash or cash equivalents received as a gift by members in the household; exclude the first $6,500 of income by a claimant’s disabled adult c hild who qualifies as the claimant’s dependent; exclude dif f iculty of car e pa yments for 2006 household income. Maximum 2006 household income for property tax adjustment increases to $90,000. RENTERS AND HOMEO WNERS WITH LESS THAN $1 0,000 HOUSEHOLD INC OME The percentage of income used to calculate the renter rebate or additional property adjustment is now 2%. VERMONT RESIDENT • NONRESIDENT • PART-YEAR RESIDENT 2006 INCOME TAX RETURN FAST SAFE EASY FOR MORE INFORMATION ON ELECTRONIC FILING Go to the VT Department of Taxes website at www .s t at e.vt.us/t ax OR Talk to your tax preparer and ask him or her to file your return electronically. V E R M O N T PL ANNING F OR 200 7 T AX YEAR 200 7 HOUSEHOLD INC OME will include difficulty of care payments and flexible family funding payments above $6,500. V T HIGHER EDUC A TION INVES TMENT CREDIT Up to $2,500 of contributions per beneficiary made in 2007 will be available for the tax credit and the credit increases to 10% of the allowable contribution.

Upload: taxman-taxman

Post on 04-Aug-2015

263 views

Category:

Business


2 download

TRANSCRIPT

DID YOU KNOW . . .

You can file your VT incometax returns on-line usingsoftware from the major taxpreparation companies.Some charges may apply.Some taxpayers may beeligible to file free. ��

Over 40% of all taxpayersfiled their income tax returnselectronically last year. ��

These taxpayers receivedconfirmation their returnswere filed, received theirrefunds in 5 business days orless, and could choose todeposit the refund directlyinto their bank accounts. ��

CHANGES FOR 2006PROPERTY TAX ADJUSTMENT CALCULATION uses 2006

household income and the property taxes on the 2006/2007 property

tax bill. The adjustment includes school property tax and, if eligible,

municipal property tax.

PROPERTY TAX ADJUSTMENT ELIGIBILITY requires the

homeowner own and occupy the property as his or her principal

residence on April 1, 2007.

USING AN INCOME TAX REFUND TO PAY PROPERTY TAXES

Taxpayers may designate all or a part of their income tax refund to pay

their property taxes. See instructions for Form IN-111, Section 8, Line

33b.

ANGEL VENTURE CAPITAL becomes a tax credit instead of a

deferral of tax on the capital gain. See instructions for Form IN-119.

AMENDED VT INCOME TAX RETURN Taxpayers now have 60

days from notice of an IRS change or filing an amended Federal return to

file an amended VT income tax return.

APRIL 17, 2007 DUE DATE for the Income Tax Return, Income

Tax Extension Request, Renter Rebate Claim, Declaration of Vermont

Homestead and Property Tax Assistance Claim. April 15th falls on a

Sunday in 2007. Federal returns for VT taxpayers are processed at the

IRS center in Andover, MA that observes Patriot’s Day on Monday, April

16th. This extends the VT filing due date to April 17th.

NEW FORM HS-122 combines the Declaration of Vermont

Homestead and the Property Tax Adjustment Claim and replaces old

Forms HS-131, HS-138, and HS-139.

NEW DUE DATE FOR RENTER REBATE CLAIM AND

PROPERTY TAX ADJUSTMENT CLAIM is the same due date for the

income tax return. Claims may be made up to September 4, 2007;

however, late filing penalties apply to property tax adjustment claims.

PROPERTY TAX ADJUSTMENT goes directly to the municipality

as a credit towards the 2007/2008 property tax bill. Homeowners

receive a property tax bill for the balance. Adjustment credits go to the

municipality on July 1st for claims filed by April 17th. Claims made

between April 18th and September 4th are sent to the municipality

September 15th.

MAXIMUM 2007 PROPERTY TAX ADJUSTMENT is $10,000.

HOUSEHOLD INCOME CHANGES: Include amount over $6,500

of cash or cash equivalents received as a gift by members in the

household; exclude the first $6,500 of income by a claimant’s disabled

adult child who qualifies as the claimant’s dependent; exclude

difficulty of care payments for 2006 household income. Maximum

2006 household income for property tax adjustment increases to

$90,000.

RENTERS AND HOMEOWNERS WITH LESS THAN $10,000

HOUSEHOLD INCOME The percentage of income used to calculate

the renter rebate or additional property adjustment is now 2%.

VERMONTR E S I D E N T • N O N R E S I D E N T • P A R T - Y E A R R E S I D E N T

2 0 0 6 I N C O M E T A X R E T U R N

FASTSAFE

EASY

FOR MOREINFORMATION ON

ELECTRONIC FILING

Go to the VTDepartment of Taxeswebsite atwww.state.vt.us/tax

OR

Talk to your taxpreparer and ask himor her to file yourreturn electronically.

VVEERRMMOONNTT

PLANNING FOR 2007 TAX YEAR2007 HOUSEHOLD INCOME will include difficulty of care

payments and flexible family funding payments above $6,500.

VT HIGHER EDUCATION INVESTMENT CREDIT Up to $2,500

of contributions per beneficiary made in 2007 will be available for the

tax credit and the credit increases to 10% of the allowable contribution.

Dear Fellow Taxpayer:

There is wisdom in the saying, "You can't see the forest for the trees." It is important that we don't let our day-to-

day routines cloud our view of long term trends. During tax season, while we're all busy collecting records and

filling out forms or scrutinizing computer screens to properly file our current tax returns, we might not think to take

a few steps back to see how our incomes have changed over time.

So, over the past few months we did just that. We took a look at how the incomes of Vermont residents changed

from 1992 to 2004. For each year during this period, we divided all income tax returns into 5 groups after ranking

them from lowest to highest based on the amount of their income. The five groups were those with incomes in the

lowest 20%, those between 20% and 40%, those between 40% and 60%, those between 60% and 80% and those above

80%. Here's what we found:

1992 2004 Annual

Income Group Median Income Value Median Income Value Rate of Change

20% or Below $ 3,540 $5,110 3.1%

20% to 40% $11,518 $16,530 3.1%

40% to 60% $20,493 $29,862 3.2%

60% to 80% $34,254 $50,712 3.3%

80% to 100% $59,883 $92,234 3.7%

As with most statistics, more interesting questions are often raised than are answered. However, from the above,

two fundamental trends are clear.

We live in an economic environment where our incomes are growing, on average, three to nearly four percent per

year. The numbers tell a story for each group, but the groups are not static. Each group is a collection of

individuals, some of whom rise or fall into another income group as their financial situation changes over time.

However, the overall modest growth trend is unmistakable, and the implications for individuals and families

facing increased pressures on household budgets must be recognized as we consider tax policy.

The other obvious trend is that growth is not consistent across income groups. Those in the top income group are

doing modestly better than their fellow Vermonters, even though there is volatility from year to year within this

group. Our analysis indicates that because capital gains are a higher percentage of income for the top group, their

incomes fluctuate more widely from year to year as the investment markets go up and down. Evidence of slower

income growth for those in the lower and middle income groups is a reminder that growing our economy for all

Vermont's citizens is important to ensure financial security for all.

Once again, I want to thank you for your contributions to Vermont's economy and for the resources you provide

state government to support important public services. We here at the Tax Department extend to you our best

wishes for a healthy and rewarding 2007.

VISIT our web site at www.state.vt.us/tax for:

• E-File - how to file electronically

• On-line filing of Form HS-122

• Tax return preparation assistance locations and times

• Department contact information

• 2007 Property Tax Adjustment worksheet

• VT tax forms (NOTE: Using downloaded forms will delay

processing)

• Updated tax information

• Filing checklist for recommended order to complete VT forms.

• Technical Bulletins

TAXPAYER ASSISTANCEWe're Here To Answer Your Questions

CALL 1-866-828-2865 (toll-free in VT)

1-802-828-2865 (local or out-of-state)

ANY TIME to:

• Order tax forms

• Get the amount of your 2006 Education Property Tax payment

• Track processing status of your 2006 returns

• Verify amount of 2006 estimated payments on record

• Learn the status of your 2007 Declaration of Homestead

FROM 7:45 a.m. to 4:30 p.m. to speak with a Department

representative

Message from the Commissioner:

Tom Pelham

Commissioner of Taxes

3

MAILING A PAPER-FILED RETURN

• Sign all returns as required. • Enclose all required supporting documents.

• Staple W-2s, 1099s, returns, supporting documents to the lower

left front of the first form. Please use only one staple.

• Affix appropriate postage to envelope. NOTE: More than five

pieces of paper may require extra postage. Ask your post office to

weigh the envelope to be sure it is not returned to you for postage

due.

• No pre-addressed, color-printed envelope? Mail to:

TAX DUE RETURNS REFUND & NO TAX DUE RETURNSVT Department of Taxes VT Department of Taxes

PO Box 1779 PO Box 1881

Montpelier, VT 05601-1779 Montpelier, VT 05601-1881

(see payment options on page 4)

GENERAL INCOME TAX INFORMATION

THE LABEL

Use the mailing label on this booklet to speed processing and to preventerrors that may delay your refund check. The 9-digit number printed aboveyour name is your VT tax ID number. You must print your social securitynumber(s) in the space provided on each form. The forms cannot beprocessed without your social security number. Forms HS-122 and PR-141also have a "place label here" screening because they can be filed withoutan income tax return. If you are filing an income tax return with one ofthese forms, place the label on the income tax return and then printyour social security number, name, and address on the other return.

Corrections to the label: Place the label on the form and print yourSocial Security Number on the form. Cross out the incorrect informationand print the correct information on the label in blue or black ink. Addmissing information such as apartment number, spouse name, Jr. or Sr.suffix. Remember to print your correct information on all other returnsbeing filed. NOTE: If the label shows both spouses' names and you arefiling separately, you cannot use the label. You will need to print yourinformation on all returns being filed.

Didn't receive a label? You will need to print your information on allreturns being filed.

REQUIREMENT TO FILE A 2006 VT INCOME TAX RETURN

A 2006 VT income tax return must be filed by a Full-Year or Part-Year VTresident or a Nonresident if:

You are required to file a 2006 Federal income tax return, and

You earned or received $100 or more in VT income, or

You earned gross income of $1,000+ from sources on page 5.

USE WHOLE DOLLARS

Round entries to the nearest whole dollar. The cents entry boxes arepreprinted with zeros. To round: 1 cent to 49 cents, enter the existingdollar amount (Example: enter $97.49 as $97). For 50 cents to 99 cents,enter the next higher dollar amount (Example: $97.50 as $98).

REQUESTS FOR ADDITIONAL INFORMATION

You may be asked to supply additional information to clarify items on yourVT return. Such a request does not necessarily mean that you filedimproperly or that your return has been selected for an audit. Theserequests are a routine part of processing returns.

INCOMPLETE RETURNS

If necessary information is missing, the return may be processed but thecredit, adjustment, or benefit denied. This may result in a reduced refund ora bill. You will have an opportunity to supply the information. In someinstances, incomplete forms may be returned to you.

TIMELY FILING

A return mailed through the U.S. Post Office is considered timely if receivedat the Department within 3 business days of the due date. Electronic filingor bringing the return to the Department in person requires the return bereceived by the Department on or before the due date to be timely.

INCOME TAX DUE DATE

On or before April 17, 2007. See below for extension information.

EXTENSION OF TIME TO FILE YOUR VT INCOME TAX RETURN

File VT Form IN-151 on or before April 17, 2007 to receive an automatic six-month extension of time to file. NOTE: An extension only allows more timeto file the income tax return. It does not extend the due date for taxpayment. Interest and penalty accrue on tax due from April 18 to thereceipt of payment. The extension to file an income tax return does notapply to Forms HS-122 or PR-141.

LATE INCOME TAX RETURNS

Returns without an extension of time may be filed up to 60 days after April17, 2007 without a late file penalty charge. Returns without an extensionfiled on the 61st day after April 17, 2007 or later will be charged a $50 latefile penalty. Returns with an extension filed on or before the extended duedate are not charged a late file penalty. However, returns with an extensionfiled one or more days after the extended due date are charged a $50 latefile penalty. NOTE: The late file penalty applies even if the return resultsin a refund or no tax due. If any tax is due, late payment penalty andinterest charges apply.

TAX DUE

Tax due on income tax returns filed on or before April 17, 2007 must be paidby April 17 to avoid interest and late pay penalty charges. See PaymentOptions. If the tax due is $500 or more, see Estimated Income TaxPayments section.

INTEREST AND LATE PAY PENALTY

Tax paid after April 17, 2007 accrues interest and late pay penalty chargeson the unpaid tax amount from April 17, 2007 until the date of payment.Interest is 0.7% per month. Penalty is 1% per month, up to 25% of theunpaid tax.

ESTIMATED INCOME TAX PAYMENTS

Who Must Make Payments:Estimated income tax paymentsapply to every individual (exceptfarmers and fishermen as definedby the laws of the United States)when the income tax exceeds thewithholding and tax credits.Estimated payments are generallynecessary on income with no withholding or insufficient withholding.

Amount of Estimated Payments: If the taxes withheld from your wagesare less than your income tax (reduced by any allowable credits), you mayneed to make estimated tax payments in four equal installments. Estimated

Electronic filing allows you to receive your refund in as little as 5

business days and you can choose to deposit the refund directly

into your bank account. If you owe tax, you can make or schedule

a payment online. If you file your return yourself, filing online is

available and you may qualify for free filing. Or, ask your tax

preparer to file your return electronically. See our website at

www.state.vt.us/tax

E-Filing - Fast ~ Easy ~ Secure

ELECTRONIC FILING!

NOTE: Making estimated

payments is particularly

important for recipients of

income without withholding,

VT residents working in

another state, or non-VT

residents working in VT.

!

payments (together with withholding and credits) must equal 100% of lastyear's tax or 90% of this year's tax, or you will be billed interest and penaltyon the difference between the payment that should have been made eachquarter and the payment actually made. NOTE: No interest and penalty willbe assessed if your income tax from Line 26 of the VT income tax form, lesswithholding and credits, is less than $500 for the taxable year. Examples:(1) Your tax last year was $800. This year it is $1200. You have nowithholding, but make four timely estimated payments of $150 each. Thetotal estimated payments ($600) and withholding ($0) do not equal eitherlast year's tax or 90% of this year's tax and this year's tax (Line 26 lesswithholding and credits), is not less than $500. You owe interest andpenalty on the underpayments. (2) Your tax last year was $800. This yearit is $400. You had withholding of $100, but made no estimated payments.Your total withholding ($100) and estimated payments ($0) do not equaleither last year's tax or 90% of this year's tax. However, your tax (Line 26less withholding and credits) is less than $500 so no interest or penalty willbe assessed. (3) Your tax last year was $800. This year it is $1500. Youhave withholding of $400 and make four timely estimated payments of$100 each. Your total withholding and estimated payments equal $800,which is 100% of last year's tax. No interest or penalty will be assessed.(4) Your tax last year was $800. This year it is $600. You had withholdingof $110, but made no estimated payments. The total of your withholding($110) does not equal either last year's tax or 90% of this year's tax.However, your tax (Line 26), less withholding and credits, is less than $500($600 - $110). No interest or penalty will be assessed. (5) Your tax lastyear was $800. This year it is $1000. You had withholding of $300, butmade no estimated payments. You owe interest and penalty on $500 - thedifference between $300 and 100% of last year's tax.

Penalty & Interest Charges: The underpayment in each quarter isassessed from the estimated payment due date to the date the tax is paid:

• Interest of 0.7% per month.

• Penalty of 1% per month.

Calculating the Charges: Use VT Worksheet IN-152 to calculate theamount. Enter the result on Form IN-111, Section 9, Line 36, and include theamount with your tax payment. Payment at the time of filing may reducethe charges as they accrue up to the time of payment. If you have anoverpayment but owe underpayment charges, the charges are subtractedfrom the overpayment. NOTE: Ifyou annualize for Federal estimatedtax payments, use VT WorksheetIN-152A.

Exceptions to Charges: (1)Taxpayers with occupations asfarmers or fishermen are not required to make estimated payments. If youare billed, contact the Department to have the bill adjusted. (2) Taxpayersusing the annualizing method for Federal estimated payments should useIN-152A to calculate applicable interest and penalty and send a copy of theFederal Form 2210 with supporting pages to the Department

Next Year: If you owed more than $500 tax or you made estimatedpayments, the Department automatically sends you VT Form IN-114voucher booklet for 2007 tax year. Estimated payments are due April 15,June 15, and September 15, 2007 and January 15, 2008. To assure you donot owe more than $500 tax next year, you may wish to adjust yourwithholding, or make estimated payments, or a combination of both.

OFFSETS OF YOUR REFUND

An offset means your income tax refund has been used to pay an unpaiddebt. VT law allows the VT Department of Taxes and other governmentagencies to make a claim against your income tax refund. Other agenciesinclude Internal Revenue Service, Office of Child Support, Department ofCorrections, Vermont court fines, tickets and fees, student loan agencies,and Vermont State Colleges. You will receive notification if your refund isoffset.

INJURED SPOUSE CLAIMS

Does your spouse or civil union partner owe money to a VT state orFederal agency and you file a joint tax return? The entire income refund,renter rebate, or property tax adjustment may be used to pay the bill. Ifyour spouse is responsible for the bill, and you are not, you need to file an"injured spouse" claim for your portion.

Your portion of the income tax refund or renter rebate will be based on theproportion of your income to total income.

Your portion of the property tax adjustment will be based on yourownership percentage.

To make an "injured spouse" claim, send in an envelope separate fromyour return (1) the request letter; (2) copy of Federal Form 8379 (if youfiled one with the IRS); (3) if self-employed, copy of Federal income taxreturn with Schedules C and SE to: VT Department of Taxes, ATTN:Injured Spouse Unit, PO Box 1645, Montpelier VT 05601-1645.Electronic filers also send copies of statement of income such as W-2,1099, etc.

$ You will receive a notice from the Department if the income tax refund,renter rebate, or property tax adjustment is offset. You have 30 daysfrom the date on the notice to submit the injured spouse claim to theDepartment.

PAYMENT OPTIONS

ACH Debit for Electronic Filers: You can pay your tax at the same time youelectronically file your income tax return. If you file before April 17, you canschedule an April 17 payment date.

By Credit Card: Go to www.state.vt.us/tax to use VTPay. A conveniencefee applies to payments over $200.

By Check - Make checks payable to Vermont Department of Taxes

• Check sent with Return: Staple the check to the IN-111 with the

W-2s and 1099s to the lower left front of the return.

• Check sent separate from Return: Complete Form IN-116, Payment

Voucher. Send voucher and check to the address for tax due

returns on page 3.

FINANCIAL DIFFICULTIES

If you cannot pay your entire VT income tax liability with the return, file thereturn on time and pay as much as you can. Then immediately write to theDepartment to apply for a payment plan. Do not include this request withyour return. Send the request to: VT Department of Taxes, ATTN:Compliance, PO Box 429, Montpelier, VT 05601-0429.

You may be asked for financial information to determine the appropriateinstallment payments. Without a payment plan, unpaid income tax resultsin collection action that may include placement with a commercialcollection agency, liens on your property, legal action, or loss or suspensionof professional license.

NET OPERATING LOSSES

No VT refund is available for a carryback. The VT carryback orcarryforward election for a net operating loss must be the same as electedfor Federal purposes.

CLAIMING A VT REFUND

You must file a VT income tax return to receive a refund of VT withholdingor estimated payments. You have up to 3 years from the due date of thattax year's return. Example: You did not file a return for tax year 2003 andnow find that you are due a refund. You file the 2003 return on August 10,2007. Tax year 2003 return was due April 15, 2004. The last time youcould file and get a refund for the 2003 return was April 15, 2007. Thisfiling is beyond the three years and no refund is available.

4

NOTE: The IN-152 and

IN-152A worksheets are

available on our web site at

www.state.vt.us/tax and

does the math for you.

!

AMENDING OR CORRECTING VT INCOME TAX RETURNINFORMATION

• Change to VT income An amended return is due even if the

change is not from an adjustment to your Federal income tax return. For

example, a nonresident or part-year resident may discover the amount of

income taxable to VT is different from the amount originally reported.

• Changes to Federal tax information Filing an amended VT return

is required within 60 days of notification by Internal Revenue Service. If

the IRS adjusted your Federal taxable income, capital gains amount, earned

income tax credit, the Federal tax credits passed through to VT tax, or any

other change that affects your VT tax, you must file an amended VT income

tax return. Attach a copy of all Federal forms showing changes to the VT

amended return. The IRS and VT Department of Taxes routinely share

information. Differences in the information on file with the IRS and the VT

Department of Taxes, other than those allowed by VT law, are identified and

may be audited.

• Filing an amended Federal tax return Filing an amended VT

return is required within 60 days of filing an amended return with the

Internal Revenue Service if VT income is affected.

FORM FOR AMENDING VT INCOME TAX RETURN:

� Check the Amended box on Form IN-111, Section 1 for the applicable taxyear. Enter the correct figures as if this were the original filing. BelowSection 9, use the amended box to enter the amount originally refunded orpaid to arrive at the amount of tax due or amount of refund.

VT INCOME TAX DEFINITIONS

Adjusted Gross Income or AGI means adjusted gross income fromFederal income tax return filed or from the recomputed Federal income taxreturn.

Adjusted VT Income Tax means the VT tax calculated on VT TaxableIncome as adjusted by certain additions, subtractions, and provisions forexempted income. The additions are 24% of the following Federal tax onQualified Retirement Plans including IRA, MSA and other tax favoredaccounts; Recapture of Federal Investment Tax Credit; and Federal tax onqualified lump-sum distributions from Federal Form 4972; plus any Vermonttax credit recapture. Subtractions are 24% of the following Federal taxcredits for Child and Dependent Care Expenses (unless qualified for Low-Income Child & Dependent Care Credit); Credit for Elderly or Disabled;Investment Tax Credit; and VT Farm Income Averaging Credit. The VTIncome Tax can be adjusted for the percentage for VT exempt incomeand/or VT to non-VT income.

Domicile is the place where you have your permanent home. Establishingdomicile depends on factors such as the location of residences owned orrented, the amount of time spent at the residences, the location of itemsconsidered of sentimental or financial value, how and where one's living isearned, an investment in a business or profession in this state, place ofvoter registration, state issuing driver's license and automobile registration,and the residence of the taxpayer's immediate family. No one factor isconclusive.

You can have only one domicile. Your domicile does not change unlessyou move to a new location with the intent to make it your permanenthome. If you move to a new location but only intend to stay a limited time,your domicile does not change. For more information, see DepartmentRegulation 1.5811.

Nonresident means an individual who is neither domiciled in VT normaintained a permanent place of abode in VT where the individual waspresent for more than 183 days of the taxable year.

Part-Year Resident means an individual who meets the criteria forResidency during a portion of the taxable year.

Recomputed Federal Income Tax Return means a Federal income taxreturn prepared for VT purposes only that uses a different filing status forVT and prepared using the IRS rules for the VT only filing status. Therecomputed return provides the amounts for entries on the VT return thatrequire Federal line information. See Filing Status instructions forinformation when a recomputed Federal income tax return is applicable.

Resident means an individual who meets the criteria for Residency.

Residency means, for purposes of income tax, an individual who in thatportion of the taxable year (1) is domiciled in VT; or (2) maintains apermanent place of abode and is present in VT for more than a combinedtotal of 183 days of the taxable year.

Taxable Year means the calendar year. Call the Department if you are afiscal year filer.

VT Income of Residents means the Adjusted Gross Income of a Residentless the following:

• Income exempted from state taxation under the laws of the United

States

• Certain military pay (see page 44)

• Payment by the State of VT to a family for the support of an eligible

person with a developmental disability when included in Federal

adjusted gross income (see page 44)

• Wages received under Federal incentive work programs if wages

are part of Federal adjusted gross income under Section 280C of

the Internal Revenue Code (see page 44)

• Railroad Retirement Income Tier I and Tier II (see page 44)

• Expenditures or expenses incurred on VT property to meet the

Americans with Disabilities Act (see page 44)

VT Income of Nonresidents means the sum of the following items to theextent the items are required to be included in Federal adjusted grossincome:

• Rents and royalties from ownership of property located in VT

• Gains from the sale or exchange of VT property, including the sale

of timber or timber rights

• Wages, salaries, commissions, or other income received for

services performed in VT. Excluded from VT tax are certain military

pay (see page 44) and income received for a dramatic performance

in a commercial film to the extent such income would be excluded

from personal income tax in the state of residence

• Income from every business, trade, profession, or occupation

conducted in VT, including money received (1) under an agreement

not to compete with a business operation in VT, (2) for goodwill

associated with the sale of a VT business, or (3) for contractual

services associated with the sale of a VT business unless it is

shown that the compensation for services does not constitute

income from the sale of the business

• VT income previously deferred under a nonqualified deferred

compensation plan and income derived from such previously

deferred income

• Lottery winnings from ticket(s) purchased in VT for VT Lottery, Tri-

State Lottery, or PowerBall

Not included in VT income for a nonresident is income from activitiesnecessary to create or maintain a worldwide web page or Internet site. Formore information, go to www.state.vt.us/tax

VT Income of Part-Year Residents means any income described in VTIncome of Nonresidents and all items earned or received during the periodof VT residency described in VT Income of Residents.

5

You are required by VT law to file an amended VT return within 60

days of knowledge of the change to VT income, or 60 days from

receipt of your notice of change by IRS or filing an amended return

with the IRS. A late file penalty will be assessed if the amended

VT return is not filed within the 60 day.

VT Taxable Income means Federal taxable income with the addition ofinterest, dividends or other distributions from non-VT state and localobligations to the extent this income is excluded from Federal adjustedgross income, and the capital gain deferral in a previous year for investmentin a qualified business upon disposition of the taxpayer's interest in thebusiness; and to the extent such income is included in Federal adjustedgross income, a reduction for interest income from U.S. governmentobligations, and 40% of adjusted net capital gains.

INCOME FORM INSTRUCTIONS

FORM IN-111 VT INCOME TAX RETURN

Please do not make any marks in boxes or on lines that you intend toleave blank.

Section 1 Taxpayer Information REQUIRED entries. If you have alabel, place on the income tax return in the "Place Label Here" space andenter Social Security Number(s). Otherwise, print your name(s), addressand social security number(s) on the return.

Amended Return � Check here ONLY if you are filing an AMENDED2006 income tax return. See AMENDING AND CORRECTING VT RETURNINFORMATION on page 5.

Deceased Taxpayer � Check the applicable box if the taxpayer orspouse/civil union partner died during 2006. Administrator orExecutor: Use Form IN-111 to report the decedent's income from thebeginning of 2006 to the time of death. To claim an income tax refund onbehalf of the deceased, attach one of the following documents to Form IN-111: the court certificate showing your appointment as administrator orexecutor (this is not needed if you are a surviving spouse); a completedVT Form 176 (Statement of Claimant to Refund Due on Behalf ofDeceased Taxpayer), or a copy of completed Federal Form 1310. Form FI-161, VT Fiduciary Return of Income, should be filed to report the incomeof an estate or trust. Call (802) 828-2548 for information.

Line 1 VT School District Code: REQUIRED entry.

See page 11 of this booklet for school districtcodes.

VT Residents: Use the 3-digit school district code foryour residence on December 31, 2006.

Nonresidents: Enter 999 as your school district code.

Line 2 City/Town of Legal Residence REQUIREDentry. Enter your legal residence as of December 31,2006. If you live where there is both a city and townwith the same name, specify city or town. For

example: Rutland City or Rutland Town.

Section 2 Tax Filing Information

Filing Status REQUIRED entry. � Check your VT filing status box.The VT filing status is generally your Federal filing status. Exceptions (arecomputed Federal return will be required):

• CIVIL UNION (available to same sex couples holding a valid civil

union or marriage license): Recomputed Federal income tax return

required. File using either Civil Union Filing Jointly or Civil Union Filing

Separately. Because VT and IRS routinely share information, using the

civil union status alerts the Department to expect differences between the

IRS filing and VT filing. Complete another Federal return as if you filed

Married Filing Jointly or Married Filing Separately with the Internal

Revenue Service. Prepare the recomputed Federal return with the

exemptions, deductions and rules allowed by the IRS for the Married Filing

Jointly or Married Filing Separately. Mark this return as "Recomputed for

VT purposes." A copy of the recomputed return and a copy of the Federal

return actually filed with the IRS must accompany the Vermont return. Use

the recomputed Federal return information where Federal information is

required on the VT forms. If filing as Civil Union Filing Separately, enter the

other person's name and social security number in the space provided in

Section 2 at Line 7. If a non-VT resident civil union partner or same sex

spouse has no VT income, you can elect to file Civil Union Filing Separately.

• NON-VT RESIDENT SPOUSE WITH NO VT INCOME: Recomputed

Federal income tax return required. If a spouse is a nonresident of VT

and has no VT income, you can file for VT income tax purposes as Married

Filing Separately even though you filed jointly with the Internal Revenue

Service. Complete another Federal income tax return as if you filed Married

Filing Separately. Prepare the recomputed Federal return with the

exemptions, deductions, and rules allowed for Married Filing Separately.

Mark this return as "Recomputed for VT purposes." A copy of the

recomputed return and a copy of the Federal return actually filed with the

IRS must accompany the Vermont return. Use the recomputed Federal

return information where Federal information is requested on the VT forms.

Enter your spouse's name and social security number in the space provided

in Section 2 at Line 7.

Line 9 Exemptions Enter the number of exemptions claimed on yourFederal return or your Recomputed Federal return.

NOTE: Federal Forms 1040EZ and 1040NR-EZ only, enter zero ifyou are claimed as another taxpayer's dependent in 2006. Enter 1 ifyou are Single. Enter 2 if you are Married Filing Jointly or Civil UnionFiling Jointly

Line 10 Adjusted Gross Income Enter the amount from your Federalreturn. If applicable, use adjusted gross income from Recomputed Federalreturn.

Section 3 Taxable Income

Line 11 Federal Taxable IncomeEnter the amount from your Federalre turn. I f appl icable, use thetaxable income from RecomputedFederal return.

Additions to Federal Taxable Income

Line 12 Income from Non-VT State and Local Obligations are taxedin VT. Complete Form IN-112, VT Schedule A, Part I to calculate thisamount. For nonresident taxpayers, use Line 15 on Form IN-113 to adjustfor non-VT state and local obligations.

NOTE: If Federal Taxable Income is zero and you have an entry on Line 12for non-VT state and local obligations, calculate the Federal taxableincome as the loss amount. For Federal Form 1040, subtract Line 42 fromLine 41. For Federal Form 1040A, subtract Line 26 from Line 25. ForFederal Form 1040NR, contact the Department for line referencenumbers. Enter result on Line 11. � Check the box to the left of theentry box to show a loss amount.

Line 13 Federal Taxable Income with Additions Add Lines 11 and 12and enter result. To show loss amount, � check the box to the left of theentry box.

Subtractions from Federal Taxable Income

Line 14a Interest Income fromU.S. Obligations Interest incomefrom U.S. government obligations(such as U.S. Treasury Bonds, Bills,and Notes) is exempt from VT taxunder the laws of the United States.Enter the amount of interest incomefrom U.S. Obligations on this line to reduce your VT taxable income.

6

Use the

S c h o o l

District

Code and

town of

your legal

residence.

This may be

d ifferent

from your

m a i l i n g

address.

!

Bonus Depreciation taken

at the Federal level for S

Corporation, LLC, LLP, or

Partnership passes

through to the individual

taxpayer.

!

DO NOT recompute yourFederal return for exemptU.S. Obligation income.This is now part of your VTtaxable income calculation.

!

Interest income is exempt when received directly from the U.S. Treasuryor from a trust, partnership, or mutual fund that invests in directobligations of the U.S. government.

$ Income from the sale of U.S. government obligations is taxable in VT.Income from repurchase agreements, securities of FNMA or GNMA orother investments that are not direct obligations of the U.S. governmentare also taxable. See Technical Bulletin 24 for more information.

Supporting Documentation Required: If you received over $2,000 inU.S. government interest income, attach Federal Schedule B or otherlisting with amount and description. Summary information from a K-1, orjust a statement "U.S. government securities" without fur theridentification is not acceptable.

For $2,000 or less in U.S. government interest, no attachments arerequired. However, you should obtain acceptable statements for your taxrecords in the event the Department requests such documentation.

Line 14b Capital Gains Deductionfrom VT Taxable Income fron Long-Term Capital Gains If you used theFederal Qualif ied Dividends andCapital Gain Tax Worksheet tocalculate your federal tax liability,enter the amount from Federal Form1040, Line 13 or Federal Form 1040A, Line 10. If you filed FederalSchedule D, complete the VT Capital Gains Worksheet on Form IN-112.This line entry cannot be less than zero.

Line 14c VT Capital Gains Deduction Multiply the entry on Line 14bby 40% and enter result here. This line entry cannot be less than zero.

Line 14d Total Subtractions Add Lines 14a and 14c and enter result.

Line 15 VT Taxable Income Subtract Line 14d from Line 13 and enteramount. If Line 14d is larger than Line 13, enter zero. EXCEPTION: Ifyou have an entry on Line 12, Non-VT State and Local Obligations,subtract Line 14d from Line 13, � check the box to the left of the entryto show a loss, and enter that amount.

Section 4 VT Income Tax

Line 16 VT Income Tax from Tax Table or Tax Rate Schedule Usingthe VT Taxable Income amount from Line 15, calculate your VT tax usingthe applicable table or schedule and enter result.

� If Line 15 amount is less than $75,000 - Use VT Tax Tables.

� If Line 15 amount is $75,000 or more - Use VT Rate Schedules.

Line 17 Additions to VT Income Tax Complete VT Form IN-112, VTSchedule A, Part II. Additions to VT Income Tax are:

• recapture of a Vermont tax credit; or

• additional Federal tax on the following:

- Qualified Retirement Plans including IRA & MSA

- Recapture of Federal Investment Tax Credit

- Federal Form 4972 Line 7 or 30

Line 18 VT Income Tax with Additions Add Lines 16 and 17 and enterresult.

Line 19 Subtractions from VT Income Tax Complete VT Form IN-112,VT Schedule A, Part II if you filed Federally for:

• Credit for Child and Dependent Care Expenses

• Credit for the Elderly or the Disabled

• Investment Tax Credit (as defined in IRC Section 46)

• Farm Income Averaging Credit

Line 20 VT Income Tax Subtract Line 19 from Line 18 and enter result.If Line 19 is more than Line 18, enter zero.

Line 21 Income Tax Adjustment Enter 100.00% or percent from FormIN-113, Line 40. $ Entry of less than 100.00% requires filing FormIN-113.

Examples of income adjustment less than 100.00%:

• You were a nonresident or part-year resident in 2006.

• You received exempt income as defined under VT Income of

Residents on page 5.

• You claimed wages or expenses required to be added back to AGI

under IRC Sections 280C or 44.

Line 22 Adjusted VT Income Tax Multiply Line 20 by the percentageon Line 21. If Line 21 is 100.00%, Line 22 will be the same as Line 20.

Section 5 Credits and Use Tax

Line 23 Credit for Income Tax Paid To Other State or CanadianProvince (FOR FULL-YEAR AND PART-YEAR RESIDENTS) Complete FormIN-112, VT Schedule B and enter result from Line 6. For more than onestate or Canadian province, see IN-112, VT Schedule B instructions.

Line 24 VT Tax Credits Complete Form IN-119 and enter amount.

Line 25 Total VT Credits Add Lines 23 and 24 and enter result.

Line 26 VT Income Tax After Credits Subtract Line 25 from Line 22. IfLine 25 is more than Line 22, enter zero.

Line 27 Use Tax (FOR FULL-YEAR AND PART-YEAR RESIDENTS) Usethis line to report Use Tax except as noted below. Use Tax applies topurchases on which sales tax has not been charged, but are subject tosales tax. This includes purchases from a mail-order house or catalog,over the Internet, from an out-of-state retailer, or from any retailer whodid not charge sales tax. No Use Tax is due on purchases of food, clothingarticles costing $110 or less, prescriptions, or newspapers. Tax applies tomost other products including, but not limited to, magazine subscriptions,computers, furniture, jewelry, audio, video and electronic equipment.Example: In July 2006, you paid $100 for books purchased from a mail-order company that ships the books to your VT home. The companycharges no sales tax. You owe $6 Use Tax ($100 x 6%).

You may use the Use Tax Reporting Table if you do not have receipts tocalculate the actual Use Tax. The option to use the reporting table appliesonly to items costing less than $1,000. NOTE: For each item costingmore than $1,000, you must calculate the use tax and, if also using thereporting table, add that amount to the tax from the table.

Because proof of tax payment is required to register a boat orsnowmobile, use Form SU-452. Form SU-452 is available on theDepartment web site or by calling (802) 828-2515. For more informationor assistance, call the Department at (802) 828-2551.

If you have no use tax to report, leave blank or enter zero.

$ If you use the Use Tax Reporting Table, the Department will not assessadditional Use Tax unless items costing $1,000 or more each areunreported.

$ Use Tax on items purchased for a business must be reported on FormsSU-451 or SU-452 instead of this form. You cannot use the optional UseTax Reporting Table.

7

Qual i f ied Dividendsrepor ted for Federalpurposes are not eligiblefor capital gains treatmentfor VT tax purposes.

!

USE TAX REPORTING TABLE

At Least Up To Use Tax$10,000 $12,999 $ 4.0013,000 14,999 5.0015,000 17,999 6.0018,000 19,999 7.0020,000 22,999 8.0023,000 24,999 9.0025,000 27,999 10.0028,000 29,999 11.0030,000 32,999 12.0033,000 34,999 13.0035,000 37,999 14.00

At Least Up To Use Tax$38,000 $39,999 $15.0040,000 42,999 16.0043,000 44,999 17.0045,000 47,999 18.0048,000 49,999 19.0050,000 52,999 20.0053,000 54,999 21.0055,000 57,999 22.0058,000 59,999 23.0060,000 62,999 24.0063,000 and more -

Multiply IN-111 Line 10 by .0004

Adjusted Gross Income From IN-111, Line 10 is:

Line 28 Total VT Taxes Add Lines 26 and 27 and enter result.

Section 6 Voluntary Contributions

Enter the amount on the line(s) for the fund(s) to which you wish tocontribute. Your refund will be reduced, or your payment increased, bythis amount.

$ Your refund or payment must cover all contribution amounts or nocontribution is made. Example: Your return calculations show a $60refund and you make a $30 contribution - $10 to each fund. Uponprocessing, the Department discovers a math error and your refund isnow $25. The refund is less than the $30 contribution. The filer receivesthe $25 as an income tax refund and no contributions are made.

Line 29a VT Nongame Wildlife Fund Contribution

The Nongame Wildlife Fund was created to preserve VT's natural wildlifeheritage for ourselves and our culture. Many species benefit from yourgift, including loons, songbirds, frogs, turtles, bald eagles, butterflies, andperegrine falcons.

This is a convenient way to select wildlife for charitable giving. This giftis deductible on next year's Federal tax return as a charitable contribution.Thank you for caring and giving a "voice" to many of VT's rarestcreatures.

To receive a loon decal and annual newsletter featuring projectssponsored by the Nongame Wildlife Fund, contact: Nongame and NaturalHeritage Program, VT Fish & Wildlife Department, 103 South Main Street,Waterbury, VT 05671-0501 or call (802) 241-3700.

Line 29b Children's Trust Fund (VCTF) Contribution

This fund aims to improve the lives of children and youths by sponsoringprograms such as parenting education classes, youth leadershipprograms, out-of-school time activities, mentoring programs and literacyprojects which work to prevent juvenile delinquency, child abuse, andother problems families face. Funds for the programs are given to VTcommunity organizations. The programs are voluntary and open to thegeneral public. All donations are tax-deductible. Information on theorganization's income and expenses is available on their web site in theirnewsletter financial update section.

To learn more, go to the VCTF web site at www.vtchildrenstrust.org orwrite to VCTF, 53 Timber Lane, South Burlington, VT 05403; or call (888)475-5437.

Line 29c VT Campaign Fund Contribution

This fund makes finance grants to the campaigns of governor andlieutenant governor candidates. The VT Secretary of State officeadministers the revenues for the fund that come from your contributions,a portion of the fees for corporate and annual reports, and any penaltiesor fines for violations of campaign finance laws. For more information, goto their web site at www.sec.state.vt.us or write to Secretary of State,109 State Street, Montpelier, VT 05609-1103 or call (802) 828-2363.

Section 7 Payments and Credits

Line 31a VT Income Tax WithheldEnter the amount of V T income taxwithheld. Attach the state copy of yourW-2, Form 1099 or other paymentstatements to verify the amount. Failureto attach the payment statement(s) will delay processing your return andyou will not receive credit for the withholding against your VT tax.Nonresidents receiving income from a business entity, see Line 31f.

Line 31b 2006 Estimated Tax or Extension Payments Enter theamount of 2006 VT estimated income taxes you paid and/or the amountpaid with VT Form IN-151, Extension of Time to File, for the 2006 return.Remember to include any refund credited towards 2006 taxes from your2005 VT income tax return. Call (866) 828-2865 (toll-free in VT) or

(802) 828-2865 (local or out-of-state) to find out the amount of 2006 taxpayments the Department has on record.

Line 31c VT Earned Income Tax Credit (FOR FULL-YEAR AND PART-YEAR VT RESIDENTS) Enter the amount from Form IN-112, VT Schedule C.Attach a complete Form IN-112 to this form.

Line 31d Renter Rebate (FOR FULL-YEAR VT RESIDENTS ONLY) If youare filing the Renter Rebate Claim with the income tax return, enter therenter rebate amount from Form PR-141, Line 9.

Line 31e VT Real Estate Withholding (NONRESIDENTS ONLY) If yousold real estate in VT during 2006 and the buyer withheld VT income taxfrom the sales price, enter the amount withheld shown on Form RW-171,VT Withholding Tax Return for Transfer of Real Property, Schedule A, Line12. Include a copy of the first two pages of your Federal income taxreturn and any Federal schedule that documents the income or loss fromthe VT sale.

For installment sales: You must report the balance of your gain to VT onfuture returns or elect to pay VT 6% tax on the entire gain in the year ofthe sale. If you choose the 6% tax, include a letter with the return askingfor the "6% Tax Elect Out for VT Purposes", attach a copy of FederalForm 6252, and do not include the gain from the sale on Form IN-113, Line7. Call (802) 828-2776 if you need assistance completing this portion ofthe VT return.

Line 31f Business Entity Payments for Nonresident Partner,Member, or Shareholder (NONRESIDENTS ONLY) Enter the estimatedincome tax payments made on your behalf by a partnership, limitedliability company, or S corporation toward your 2006 VT income tax. Ifyou need to check with the entity on these payments, mention that theentity makes these payments on VT Form WH-435. If the paymentsexceed your VT income tax liability, you may be entitled to a refund. Title32 V.S.A. §§5914 and 5920 allow the entity, at its option, to recover anyexcess payment from you. Call (802) 828-5723 if you need informationon WH-435 payments. See Technical Bulletins 5 & 6.

Line 31g Low Income Child & Dependent Care Credit (FULL YEAR VTRESIDENTS ONLY) Eligible taxpayers receive 50% of the Federal Child andDependent Care Credit as a VT income tax credit instead of the 24% creditfrom Form IN-112. Taxpayers must meet the following requirements:

• Income of

- less than $30,000 Federal Adjusted Gross Income for

taxpayers filing as Single, Head of Household or Married

Filing Separately; Civil Union Filing Separately, or,

- less than $40,000 Federal Adjusted Gross Income for

taxpayers Married Filing Jointly, Civil Union Filing Jointly or

Qualified Widow(er)

and

• Care was provided by a home or facility accredited by the VT

Agency of Human Services. Include a copy of your Federal Form

2441. To determine if your care provider is accredited, go to "Low

income child and dependent care" on the drop down menu in the

Individual section of the Department's web site at

www.state.vt.us/tax or call (800) 540-7942.

$ If your Federal tax credit is based on care provided by accredited andnon-accredited providers, complete the Low Income Child & DependentCare Worksheet on Form IN-112 to determine if using the Low Incomecredit or 24% of the total Federal tax credit is more beneficial to you.Only one of the credits can be taken.

Line 31h Total Payments and Credits Add Lines 31a through 31g andenter result.

Section 8 Refund

Line 32 Overpayment If Line 30 is less than Line 31h, you have arefund. Subtract Line 30 from Line 31h and enter result here. This is the

8

To get credit for

your VT withholding,

you must enter the

amount on Line 31a.!

amount your payments and credits exceed your income tax, use taxliability and voluntary contribution entries.

Line 33a Credit to 2007 EstimatedTax Payment Enter the amount ofrefund from Line 32 you want creditedtoward your 2007 income tax. Yourincome refund will be reduced by thisamount.

Line 33b Credit to 2007 Homestead Property Tax Bill If you filed a2007 Declaration of Vermont Homestead on Form HS-122 and you filedthe 2006 income tax return on or before September 1, 2007, you mayelect to use all or part of your refund to pay your homestead property taxbill. Your income refund will be reduced by this amount. The refundamount sent to your municipality will include an additional 1%.

Line 34 Refund Amount Subtract Lines 33a and 33b from Line 32 andenter the result. This is the amount of your refund.

Section 9 Amount You Owe

Line 35 If Line 30 is more than Line 31h, this is the amount you owe.Subtract Line 31h from Line 30 and enter result.

Line 36 Interest and Penalty on Underpayment of or Failure to MakeEstimated Tax Payments Paying charges at the time of filing mayreduce the amount of charges that would be billed later. Use WorksheetIN-152 or IN-152A, available on our website, to calculate the charges.The paper worksheets can be obtained by calling 802-828-2515. If youhave a refund, the interest and penalty will be deducted. See page 3 formore information and examples.

Worksheet IN-152A calculates penalty and interest for taxpayers whoannualize.

Line 37 Total Add Lines 35 and 36. Enter amount. This is the amountyou owe. See Payment Options on page 4. If you are unable to pay allyour taxes and want to request a payment plan, see page 4.

Section 10 Signature

Signature REQUIRED entry. Sign the return in the space provided. Iffiling this form jointly, both filers must sign.

Date Write the date on which the form was signed.

Occupation Enter your occupation. If filing jointly, enter both filers'occupations.

Age � Check this box at the applicable signature line if age 65 or olderon December 31, 2006.

Disclosure Authorization If you wish to give the Depar tmentauthorization to discuss your 2006 VT income tax return with your taxpreparer, � check this box and include the preparer's name.

Preparer If you employed a paid preparer, he/she must sign the form.The preparer must enter his/her social security number or PTIN and, if thepreparer is employed by a business, the EIN of the business. If someoneother than the filer(s) prepared the return without charging a fee, thatsignature is optional.

FORM IN-112 VT TAX ADJUSTMENTS and CREDITS

Print your name and social security number on this form. Use blue or blackink to make all entries.

VT Schedule A Adjustments to Income or VT Tax

INTEREST, DIVIDEND AND OTHER DISTRIBUTION INCOME FROM NON-VTSTATE AND LOCAL OBLIGATIONS ARE TAXABLE IN VT. A VT obligation isone from the State of VT or VT municipality.

Part I Income from State and Local Obligations

Line 1 Enter the total interest, dividend and distribution income receivedfrom all state and local obligations exempted from Federal tax.

Line 2 Enter the interest, dividend and distribution income from VTobligations. This may have been paid directly to you or through a mutualfund or other legal entity that invests in VT state and local obligations. Ifyou receive this income from a mutual fund that has only a portion of itsassets invested in VT state and local obligations, enter only the VTobligation amount.

Line 3 Subtract Line 2 from Line 1. Enter result and enter on Form IN-111,Section 3, Line 12. This is the amount of interest, dividend and distributionincome from state and local obligations that must be included in VT TaxableIncome. $ If Line 2 is more than Line 1 on Form IN-112, enter 0 and alsoon Form IN-111, Section 3, Line 12.

Part II Adjustments to VT Income Tax

If you file Federal Form 1040NR, contact the Department for linereferences.

Additions to VT Tax

Line 4 Tax on Qualified Plans and tax favored accounts. Enter the amountfrom Federal Form 1040, Line 60.

Line 5 Recapture of Federal Investment Tax Credit from Federal Form4255.

Line 6 Tax on lump sum distributions from Federal Form 4972, Line 7 or 30.

Line 7 Add Lines 4 through 6 and enter result.

Line 8 Multiply Line 7 by 24% and enter result.

Line 9 Recapture for Vermont tax credit(s). Contact the Department at1-866-828-2865 (toll-free in VT) or (802) 828-2865 (local or out-of-state)for information on calculating the recapture amount.

Line 10 Add Line 8 and Line 9 and enter result. Also enter on Form IN-111,Section 4, Line 17.

Subtractions from VT Tax

Line 11 Credit for Child and DependentCare Expenses from Federal Form1040, Line 48; 1040A, Line 29. Do notuse this line if you qualify for the LowIncome Child and Dependent Care Credit on Form IN-111, Section 7, Line 31gunless your Federal tax credit is based on care provided by accredited andnon-accredited providers. Complete the Low Income Child & DependentCare Worksheet on this form to determine if using the Low Income credit or24% of the total Federal tax credit is more beneficial to you. Only one of thecredits can be taken.

Line 12 Credit for the Elderly or the Disabled from Federal Form 1040, Line49 or 1040A, Line 30.

Line 13 Investment Tax Credit as defined by IRS Section 46 and claimed onFederal Form 3468.

Line 14 VT Farm Income Averaging Credit This credit is available forfarmers ONLY if Federal tax was calculated using Federal Schedule J.Complete the Form IN-112 worksheet.

Line 15 Add Lines 11 through 14 and enter result.

Line 16 Multiply Line 15 by 24% and enter result. Also enter on FormIN-111, Section 4, Line 19.

VT Schedule B Credit for Income Tax Paid to Other State or CanadianProvince (FOR FULL-YEAR AND PART-YEAR VT RESIDENTS ONLY)

Part-Year Residents - Go to our web site at www.state.vt.us/tax or contactthe Department for information on how to file for income earned in anotherstate while a VT resident.

9

The Renter Rebate

from Line 31d can only

be refunded or used

to pay 2006 VT tax.

It cannot be applied

to 2007 income taxes.

!

NOTE: This is NOT the

Federal child tax credit.!

NEWWW

NEWWW

Supporting Documents Required: Copy of 2006 tax return filed in theother state(s). For Canadian Province(s), a copy of 2006 provincial taxreturn filed, copy of Federal Form 1116 (Foreign Tax Credit), and if filed,Revenue Canada income tax return. $ Convert amounts on Canadianreturns to U.S. dollars.

A credit may be allowed against VT 2006 income tax on income tax paid inthis tax year to another state or Canadian province on income taxed byboth VT and the other taxing jurisdiction. The credit does not include cityor county taxes. Credit for Canadian provincial income tax excludes theportion used as a foreign tax credit on Federal Form 1040.

More Than One State or Province?

• Complete a VT Schedule B for each state or province. Do not

complete an IN 112 that combines the income and credit of all

states or provinces.

• Enter the adjusted gross income taxed by the other state or

province

• Add Line 6 from each VT Schedule B to get the tax credit entry on

Form IN-111, Section 5, Line 23.

• Attach all VT Schedules B and a copy of each state or provincial

income tax return to your VT income tax return.

Line 1a Enter your adjusted gross income from sources outside VT in2006. Include only income that is taxed by VT and also taxed by anotherstate or Canadian province.

Line 1b Enter 40% of long-term capital gain reported to this state orCanadian province in 2006.

Line 1c Subtract Line 1b from Line 1a and enter result.

Line 2a Enter the adjusted gross income from VT Form IN-111, Line 10.

Line 2b Enter Capital Gains exclusion from VT Form IN-111, Line 14c.

Line 2c Subtract Line 2b from Line 2a and enter result.

Line 3 Enter the VT Income Tax from Form IN-111, Section 4, Line 20.

Line 4 Divide Line 1c by Line 2c; then multiply the answer by Line 3, andenter result. This is the amount of VT tax that would have been due on theincome taxed in another state or Canadian province.

Line 5 Enter the amount of 2006 tax year income tax paid to the otherstate or Canadian province on the income reported on Line 1c of thisschedule. $ County and city taxes cannot be included. Use only the taxpaid; withholding is not the income tax liability.

Line 6 Enter the lesser of Line 4 or Line 5. This is the allowable tax credit.Enter this amount on Form IN-111, Section 5, Line 23.

VT Schedule C VT Earned Income Tax Credit (FOR FULL-YEAR ANDPART-YEAR VT RESIDENTS ONLY)

Taxpayers Not Eligible for credit:

• Nonresidents of VT

• Those with filing status of Married Filing Separately or Civil Union

Filing Separately.

Supporting Documents Required: Evidence of earned income such asW-2 or self-employment schedule(s). Part-Year Residents must alsofile Form IN-113.

Complete the Federal earned income tax credit worksheet before doing theVT schedule. A taxpayer must be allowed the Federal earned income taxcredit to be eligible for the VT earned income tax credit. Vermont uses theFederal earned income tax credit definitions and rules.

$ Eligibility questions A and B must be answered. The claim will bedisallowed if the questions are not answered.

For Line 1 or Line 7: Use entry from Federal Form 1040, Line 66a; or Form1040A, Line 40a; or Form 1040EZ, Line 8a.

Full-Year Residents Only

Line 1 Enter the amount of your Federal earned income tax credit.

Line 2 Multiply Line 1 by 32%. Enter the result and also enter on Form IN-111, Section 7, Line 31c. This is the VT earned income tax credit.

Part-Year Residents Only

Line 3 Enter the amount of wages, salaries, tips, etc. from Form IN-113,Schedule I, Line 1, Columns A and B respectively.

Line 4 Other earned income includes income from a business, partnership,or farm. Add the amounts on Form IN-113, Schedule I, Lines 6, 10, and 12,Columns A and B respectively.

Line 5, Column A Add Lines 3 and 4 in Column A and enter result.

Line 5, Column B Add Lines 3 and 4 in Column B and enter result.

Line 6 Divide Line 5, Column B by Line 5, Column A. Enter the result as apercentage carried out to two decimal places. This is the percentage of2006 income earned in VT that is eligible for the VT earned income taxcredit.

Example $1,200 (Line 5, Column B) = .3636 or 36.36%$3,300 (Line 5, Column A)

NOTE: Adjustment can never be more than 100.00%.

Line 7 Enter the amount of your Federal earned income tax credit.

Line 8 Multiply Line 7 by 32% and enter result.

Line 9 Multiply Line 8 by Line 6. Enter the result and also enter on Form IN-111, Section 7, Line 31c. This is your VT earned income tax credit.

VT WORKSHEETS

Capital Gains Worksheet Complete this worksheet if you have qualifieddividends taxed at capital gains rate for Federal tax.

Low Income Child & Dependent Care Worksheet Complete thisworksheet if your child and dependent care Federal credit is based onamounts paid to accredited and non-accredited care providers.

VT Farm Income Averaging Worksheet Complete this worksheet if you area farmer and calculated your Federal income tax using Federal Schedule J.

FORM IN-113 INCOME ADJUSTMENT SCHEDULES

Supporting Documents Required: Copies of pages 1 and 2 of Federalincome tax return and any Federal schedules reporting VT income or loss.

$ If you recomputed the Federal return for VT purposes only, use therecomputed amounts.

$ For Married Filing Separately or Civil Union Filing Separately, all incomeof the individual filing must be included in Column A -- not just VT income.The adjustment schedule will exclude the non-VT income.

Residents: Use Schedule II to adjust for income exempt from VT incometax

Part-Year Residents and Nonresidents: Complete both Schedules I andII. A Part-Year Resident may, in some cases, be able to adjust VT incomeby both the VT percentage of income and credit for income tax paid toanother state. The income tax paid to the other state must be for incomeearned in V T whi le a V T resident. Go to our web site atwww.state.vt.us/tax or contact the Department for information on howto file for income earned in another state while a VT resident. See page 5for a definition of nonresident and part-year VT income.

Schedule I (For Nonresident or Part-Year VT Resident)

Lines 1 - 15, Column A Enter the income for these categories of adjustedgross income as shown on your Federal income tax return.

NOTE: For Line 3A - Use amount from 1040, Line 9a or 1040A, Line 9a.

10 Instructions continued on page 44

VT SCHOOL DISTRICT CODES

Homeowners: For Form IN-111, find the school district code where you owned and resided on December 31, 2006. For Form HS-122, find the schooldistrict code where you own and reside as of April 1, 2007.

Renters: Find the school district code for the town where your landlord paid school property tax for the place you lived on December 31, 2006. If you arenot sure, check with your landlord or local school officials. Enter the 3-digit code on Form IN-111 (if required to file) and on Form PR-141.

Nonresidents: Enter 999 for the school district code.

Definitions

HIP is the percentage of your household income used to calculate the portion of the homestead school property tax you pay. The State percentage is 1.80%.Anything above 1.80% reflects spending above the State per-student amount authorized by your town or school district.

HEV is the amount of school property tax for your town on $15,000.

$200K Homestead is the amount of school property tax for your town on a $200,000 homestead.

11

001 ADDISON 2.72% $215 $2,871

002 ALBANY 2.47% $196 $2,608

003 ALBURG 2.46% $194 $2,592

004 ANDOVER 2.61% $206 $2,750

005 ARLINGTON 2.88% $228 $3,037

006 ATHENS 2.52% $199 $2,658

255 AVERILL 1.80% $143 $1,900

256 AVERY'S GORE 1.80% $143 $1,900

007 BAKERSFIELD 2.54% $201 $2,679

008 BALTIMORE 2.66% $211 $2,809

009 BARNARD 2.69% $213 $2,844

010 BARNET 2.73% $216 $2,883

011 BARRE CITY 2.00% $159 $2,116

012 BARRE TOWN 2.09% $165 $2,205

013 BARTON 2.60% $206 $2,748

014 BELVIDERE 3.00% $238 $3,169

015 BENNINGTON 2.42% $192 $2,559

016 BENSON 2.32% $184 $2,447

017 BERKSHIRE 2.28% $180 $2,404

018 BERLIN 2.63% $208 $2,773

019 BETHEL 2.88% $228 $3,045

020 BLOOMFIELD 1.80% $143 $1,900

021 BOLTON 2.70% $214 $2,848

022 BRADFORD 2.66% $211 $2,812

023 BRAINTREE 2.77% $220 $2,927

024 BRANDON 2.71% $215 $2,865

025 BRATTLEBORO 3.13% $248 $3,305

026 BRIDGEWATER 2.54% $201 $2,684

027 BRIDPORT 2.84% $225 $2,996

028 BRIGHTON 2.11% $167 $2,231

029 BRISTOL 2.70% $213 $2,845

030 BROOKFIELD 2.77% $219 $2,922

031 BROOKLINE 2.60% $206 $2,746

032 BROWNINGTON 2.52% $199 $2,658

033 BRUNSWICK 1.80% $143 $1,900

252 BUEL'S GORE 1.80% $143 $1,900

034 BURKE 2.42% $192 $2,555

035 BURLINGTON 2.08% $165 $2,193

036 CABOT 2.86% $227 $3,024

037 CALAIS 2.77% $219 $2,925

038 CAMBRIDGE 3.06% $242 $3,226

039 CANAAN 2.28% $181 $2,409

040 CASTLETON 2.47% $195 $2,603

041 CAVENDISH 2.82% $224 $2,980

042 CHARLESTON 2.38% $188 $2,510

043 CHARLOTTE 2.91% $230 $3,072

044 CHELSEA 2.59% $205 $2,732

045 CHESTER 2.59% $205 $2,731

046 CHITTENDEN 2.52% $200 $2,664

047 CLARENDON 2.97% $235 $3,136

048 COLCHESTER 2.26% $179 $2,387

049 CONCORD 2.51% $198 $2,644

050 CORINTH 2.57% $203 $2,709

051 CORNWALL 2.99% $236 $3,153

052 COVENTRY 2.22% $176 $2,341

053 CRAFTSBURY 2.86% $227 $3,022

054 DANBY 2.56%* $203* $2,706*

055 DANVILLE 2.44% $194 $2,580

056 DERBY 2.27% $180 $2,398

057 DORSET 2.91% $230 $3,069

058 DOVER 2.46% $194 $2,592

059 DUMMERSTON 3.60% $285 $3,797

060 DUXBURY 2.54% $201 $2,683

061 EAST HAVEN 2.55% $202 $2,689

062 EAST MONTPELIER 2.74% $217 $2,894

063 EDEN 3.07% $243 $3,238

064 ELMORE 1.87% $148 $1,976

065 ENOSBURG 2.65% $209 $2,793

066 ESSEX JUNCTION 2.93% $232 $3,092

067 ESSEX TOWN 2.84% $225 $2,995

070 FAIR HAVEN 2.61% $207 $2,758

068 FAIRFAX 2.38% $188 $2,510

069 FAIRFIELD 2.34% $185 $2,471

071 FAIRLEE 2.63% $208 $2,779

072 FAYSTON 2.85% $225 $3,003

257 FERDINAND 1.80% $143 $1,900

073 FERRISBURGH 2.73% $216 $2,880

074 FLETCHER 2.56% $203 $2,703

075 FRANKLIN 2.20% $174 $2,322

076 GEORGIA 2.40% $190 $2,533

258 GLASTENBURY 1.80% $143 $1,900

077 GLOVER 2.88% $228 $3,045

078 GOSHEN 2.83% $224 $2,989

079 GRAFTON 2.87% $227 $3,032

080 GRANBY 2.03% $161 $2,146

081 GRAND ISLE 2.78% $220 $2,929

082 GRANVILLE 2.22% $175 $2,339

083 GREENSBORO 2.66% $210 $2,803

084 GROTON 2.66% $210 $2,804

085 GUILDHALL 1.80% $143 $1,900

086 GUILFORD 2.99% $237 $3,158

087 HALIFAX 2.53% $200 $2,670

088 HANCOCK 2.27% $180 $2,398

089 HARDWICK 2.72% $215 $2,869

090 HARTFORD 2.39% $189 $2,521

091 HARTLAND 2.83% $224 $2,990

092 HIGHGATE 2.31% $183 $2,444

093 HINESBURG 2.91% $230 $3,071

094 HOLLAND 2.39% $189 $2,519

095 HUBBARDTON 2.21% $175 $2,335

096 HUNTINGTON 2.55% $202 $2,688

097 HYDE PARK 2.72% $215 $2,871

098 IRA 2.17% $172 $2,289

099 IRASBURG 2.34% $185 $2,467

100 ISLE LA MOTTE 2.95% $234 $3,115

101 JAMAICA 2.73% $218 $2,902

102 JAY 2.63% $208 $2,775

103 JERICHO 2.56% $203 $2,703

253 JERICHO ID 2.47% $196 $2,608

104 JOHNSON 2.62% $207 $2,762

185 KILLINGTON 3.17% $251 $3,350

105 KIRBY 2.65% $210 $2,795

106 LANDGROVE 2.52% $200 $2,663

107 LEICESTER 2.56% $203 $2,705

108 LEMINGTON 2.80% $222 $2,953

259 LEWIS 1.80% $143 $1,900

109 LINCOLN 2.72% $218 $2,907

110 LONDONDERRY 2.91% $231 $3,074

VT HIP HEV HOMESTEADSCHOOL SCHOOL DISTRICT NAME HOUSEHOLD EXEMPTION SCHOOL TAX

CODE INCOME % VALUE ON $200K

VT HIP HEV HOMESTEADSCHOOL SCHOOL DISTRICT NAME HOUSEHOLD EXEMPTION SCHOOL TAX

CODE INCOME % VALUE ON $200K

* Preliminary information from Department of Education as of November 2006.Check our website at www.state.vt.us/tax or call the Department at (866) 828-2865 for final figures.

111 LOWELL 2.09% $166 $2,209

112 LUDLOW 2.79% $221 $2,944

113 LUNENBURG 2.39% $189 $2,521

114 LYNDON 2.45% $194 $2,582

115 MAIDSTONE 2.87% $227 $3,028

116 MANCHESTER 2.73% $216 $2,883

117 MARLBORO 2.89% $229 $3,049

118 MARSHFIELD 2.28% $180 $2,402

119 MENDON 2.57% $204 $2,714

120 MIDDLEBURY 3.05% $241 $3,217

121 MIDDLESEX 2.80% $221 $2,951

122 MIDDLETOWN SPRINGS 3.00% $237 $3,162

123 MILTON 2.31% $183 $2,437

124 MONKTON 2.80% $221 $2,950

125 MONTGOMERY 2.24% $177 $2,363

126 MONTPELIER 2.57% $204 $2,717

127 MORETOWN 2.77% $219 $2,923

128 MORGAN 2.29% $182 $2,421

129 MORRISTOWN 2.21% $175 $2,336

130 MOUNT HOLLY 2.81% $222 $2,965

131 MOUNT TABOR 2.77%* $219* $2,920*

135 NEW HAVEN 2.72% $215 $2,867

132 NEWARK 2.19% $173 $2,313

133 NEWBURY 2.69% $213 $2,836

134 NEWFANE 3.11% $246 $3,285

136 NEWPORT CITY 2.45% $194 $2,590

137 NEWPORT TOWN 2.38% $189 $2,515

138 NORTH BENNINGTON ID 2.75% $218 $2,900

140 NORTH HERO 2.88% $228 $3,040

139 NORTHFIELD 2.67% $211 $2,816

141 NORTON 1.92% $152 $2,031

142 NORWICH 3.07% $243 $3,244

143 ORANGE 2.40% $190 $2,528

144 ORLEANS 2.85% $226 $3,013

145 ORWELL 2.25% $179 $2,380

146 PANTON 2.59% $205 $2,738

147 PAWLET 2.45% $194 $2,589

148 PEACHAM 2.61% $207 $2,759

149 PERU 2.69% $213 $2,843

150 PITTSFIELD 2.45% $194 $2,581

151 PITTSFORD 2.82% $224 $2,981

152 PLAINFIELD 2.28% $180 $2,402

153 PLYMOUTH 2.87% $227 $3,027

154 POMFRET 2.84% $225 $2,994

155 POULTNEY 2.89% $228 $3,046

156 POWNAL 2.32% $184 $2,448

157 PROCTOR 3.08% $244 $3,251

158 PUTNEY 2.97% $235 $3,137

159 RANDOLPH 2.72% $216 $2,874

160 READING 3.05% $242 $3,222

161 READSBORO 1.80% $143 $1,900

162 RICHFORD 2.33% $184 $2,457

163 RICHMOND 2.48% $196 $2,617

164 RIPTON 2.98% $236 $3,143

165 ROCHESTER 2.97% $235 $3,134

166 ROCKINGHAM 2.76% $219 $2,914

167 ROXBURY 2.65% $210 $2,795

168 ROYALTON 2.25% $179 $2,386

169 RUPERT 2.44% $193 $2,577

170 RUTLAND CITY 2.22% $176 $2,346

171 RUTLAND TOWN 2.86% $227 $3,022

172 RYEGATE 2.66% $210 $2,804

173 SAINT ALBANS CITY 2.40% $190 $2,530

174 SAINT ALBANS TOWN 2.40% $190 $2,529

175 SAINT GEORGE 2.18% $173 $2,302

176 SAINT JOHNSBURY 2.46% $195 $2,599

177 SALISBURY 3.04% $241 $3,208

178 SANDGATE 2.88% $228 $3,040

179 SEARSBURG 1.80% $143 $1,900

180 SHAFTSBURY 2.50% $198 $2,642

254 SHAFTSBURY ID 2.75% $218 $2,900

181 SHARON 2.54% $201 $2,682

182 SHEFFIELD 2.41% $191 $2,544

183 SHELBURNE 2.78% $220 $2,935

184 SHELDON 2.24% $177 $2,365

186 SHOREHAM 3.03% $240 $3,194

187 SHREWSBURY 2.44% $193 $2,574

260 SOMERSET 1.80% $143 $1,900

188 SOUTH BURLINGTON 2.70% $214 $2,850

189 SOUTH HERO 2.58% $204 $2,727

190 SPRINGFIELD 2.77% $219 $2,924

191 STAMFORD 2.04% $162 $2,155

192 STANNARD 2.84% $225 $2,995

193 STARKSBORO 2.82% $223 $2,972

194 STOCKBRIDGE 2.57% $203 $2,710

195 STOWE 2.67% $211 $2,815

196 STRAFFORD 2.63% $208 $2,773

197 STRATTON 2.51% $199 $2,653

198 SUDBURY 2.83% $224 $2,991

199 SUNDERLAND 2.60% $205 $2,740

200 SUTTON 2.50% $198 $2,640

201 SWANTON 2.31% $183 $2,437

202 THETFORD 2.99% $236 $3,151

203 TINMOUTH 2.61% $207 $2,756

204 TOPSHAM 2.57% $203 $2,709

205 TOWNSHEND 2.98% $236 $3,147

206 TROY 2.21% $175 $2,329

207 TUNBRIDGE 2.22% $176 $2,347

208 UNDERHILL ID 2.47% $196 $2,608

209 UNDERHILL TOWN 2.47% $196 $2,607

210 VERGENNES 2.54% $201 $2,677

211 VERNON 2.88% $171 $2,274

212 VERSHIRE 3.05% $241 $3,219

213 VICTORY 2.59% $205 $2,731

214 WAITSFIELD 2.62% $207 $2,764

215 WALDEN 2.20% $175 $2,327

216 WALLINGFORD 2.84% $225 $3,003

217 WALTHAM 2.62% $208 $2,769

218 WARDSBORO 2.70% $214 $2,853

261 WARNER'S GRANT 1.80% $143 $1,900

219 WARREN 2.64% $209 $2,791

262 WARREN'S GORE 1.80% $143 $1,900

220 WASHINGTON 2.22% $176 $2,346

221 WATERBURY 2.49% $197 $2,632

222 WATERFORD 2.72% $215 $2,870

223 WATERVILLE 2.53% $201 $2,675

224 WEATHERSFIELD 2.72% $215 $2,867

225 WELLS 2.29% $181 $2,413

226 WELLS RIVER 2.66% $210 $2,804

227 WEST FAIRLEE 3.05% $241 $3,219

230 WEST HAVEN 2.71% $215 $2,860

234 WEST RUTLAND 2.53% $200 $2,666

235 WEST WINDSOR 2.43% $192 $2,563

228 WESTFIELD 2.38% $189 $2,515

229 WESTFORD 2.64% $209 $2,790

231 WESTMINSTER 2.99% $236 $3,151

232 WESTMORE 1.92% $152 $2,028

233 WESTON 2.25% $179 $2,380

236 WEYBRIDGE 2.91% $231 $3,076

237 WHEELOCK 2.41% $191 $2,544

238 WHITING 2.63% $208 $2,778

239 WHITINGHAM 3.33% $264 $3,519

240 WILLIAMSTOWN 2.48% $196 $2,614

241 WILLISTON 2.74% $217 $2,890

242 WILMINGTON 3.07% $243 $3,237

243 WINDHAM 2.62% $207 $2,765

244 WINDSOR 2.69% $213 $2,834

245 WINHALL 2.52% $200 $2,661

246 WINOOSKI 2.38% $189 $2,517

247 WOLCOTT 2.32% $184 $2,452

248 WOODBURY 2.65% $210 $2,797

249 WOODFORD 2.02% $160 $2,133

250 WOODSTOCK 2.85% $226 $3,013

251 WORCESTER 2.76% $219 $2,918

12

VT HIP HEV HOMESTEADSCHOOL SCHOOL DISTRICT NAME HOUSEHOLD EXEMPTION SCHOOL TAX

CODE INCOME % VALUE ON $200K

VT HIP HEV HOMESTEADSCHOOL SCHOOL DISTRICT NAME HOUSEHOLD EXEMPTION SCHOOL TAX

CODE INCOME % VALUE ON $200K

* Preliminary information from Department of Education as of November 2006.Check our website at www.state.vt.us/tax or call the Department at (866) 828-2865 for final figures.

9. EXEMPTIONS CLAIMED (From Federal Form 1040–Line 6d; 1040A–Line 6d; 1040EZ/1040NR-EZ–enter 0, 1, or 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. ADJUSTED GROSS INCOME (From Federal Form 1040–Line 37; 1040A–Line 21;

1040EZ–Line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

� Qualifying Widow(er)with dependentchildren

TAXABLE INCOME

11. FEDERAL TAXABLE INCOME If the Federal amount is zero, see instructions on page 6.(From Federal Form 1040–Line 43; 1040A–Line 27; 1040EZ–Line 6) . . . . . . . . . . . . . . . . . . 11.

12. ADDITIONS TO FEDERAL TAXABLE INCOME

Income from Non-VT State and Local Obligations (from Form IN-112, VT Schedule A, Part I, Line 3) . . . . . . . 12.

13. FEDERAL TAXABLE INCOME WITH ADDITIONS (Add Lines 11 and 12) . . . . . . . . . . . . . . 13.

14. SUBTRACTIONS FROM FEDERAL TAXABLE INCOME

14a. Interest Income from U.S. Obligations . . . . . . . . . . . . . . 14a.

14b. 14c.

Capital Gains (from Form IN-112, Capital Gains Worksheet, Line M.Enter “0” if Line M is negative or a capital loss amount.)

14d. TOTAL SUBTRACTIONS (Add Lines 14a and 14c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14d.

15. VT TAXABLE INCOME (Subtract Line 14d from Line 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

0 0

0 0 0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

State2 City/Town of Legal Residence on 12/31/2006

1 VT SchoolDistrict Code

Check if taxpayer diedduring 2006

Check if Spouse or CUPartner died during 2006

13

Income Tax Return2006VERMONT

PRINT in BLUE or BLACK INK DEPT USE ONLYDUE DATE: April 17, 2007

VT INCOME TAX

16. VT INCOME TAX FROM VT TAX TABLE OR TAX RATE SCHEDULE on Line 15 amount . . . . . . . . . . . . . . . . . 16.

17. ADDITIONS TO VT INCOME TAX (from Form IN-112, VT Schedule A, Part II, Line 10) . . . . . . . . . . . . . . . . . . . . 17.

18. VT INCOME TAX WITH ADDITIONS (Add Lines 16 & 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.

19. SUBTRACTIONS FROM VT INCOME TAX (from Form IN-112, VT Schedule A, Part II, Line 16) . . . . . . . . . . . . . 19.

20. VT INCOME TAX (Subtract Line 19 from Line 18) If Line 19 is more than Line 18, enter zero . . . . . . . . . . . . . . . 20.

21. INCOME ADJUSTMENT (from Form IN-113, Line 40 OR 100.00%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.

22. ADJUSTED VT INCOME TAX (Multiply Line 20 by Line 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.

Form IN-111

�CHECK

HERE if

Fiscal

Year Filer

If filing jointly, Spouse or CU PartnerSocial Security Number

Taxpayer’s SocialSecurity Number

2

3

4

Continued on back ��

Taxpayer’s Last Name

Mailing Address (Number and Street/Road or PO Box)

City/Town

Initial

First Name

State Zip Code

Spouse or CU Partner Last Name

Initial

First Name

TAX FILING INFORMATION

1 TAXPAYER INFORMATION

Enter Spouse or CU Partner full nameEnter Spouse or

CU Partner Social

Security Number

%

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check here if this isan AMENDED return

--

--

-

--

., ,

., ,

., ,

., ,

., ,

., ,

., ,

., ,

., ,

., ,

., ,., ,

., ,

., ,

.

*061111199** 0 6 1 1 1 1 1 9 9 *

�Single

� Head ofHousehold

� MarriedFilingJointly

� MarriedFilingSeparately

� CU PartnerFilingJointly

� CU

FilingSeparately

3 4 5 6 7a 7b 8

x 40%

FILING

STATUS

FORM

IN-111

Check toindicate loss�

Sta

ple

W-2

/10

99

’s h

ere

0 0., ,

REFUND

32. OVERPAYMENT If Line 30 is less than Line 31h, subtract Line 30 from Line 31h . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.

33a. REFUND TO BE CREDITED TO 2007 ESTIMATED TAX PAYMENT

Amount on 31d cannot be credited to 2007 estimated tax payments. . . . . 33a.

33b.REFUND TO BE CREDITED TO 2007 PROPERTY TAX BILL . . . . . . . . 33b.

34. REFUND AMOUNT (Subtract Lines 33a and 33b from Line 32) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.

PAYMENTS AND CREDITS

31a. VT Tax Withheld (attach state copy of W-2, 1099, etc.) . . . . . . . . . 31a.

31b. 2006 Estimated Tax or Extension Payments . . . . . . . . . . . . . . . . 31b.

31c. Earned Income Tax Credit (from Form IN-112, VT Schedule C) . . 31c.

31d. Renter Rebate (from Form PR-141, Line 9) . . . . . . . . . . . . . . . . . . 31d.

31e. VT Real Estate Withholding (See Instructions on page 8). . . . . . . 31e.

31f. Business Entity Payments for Nonresident Partner,

Member, or Shareholder (from VT Form WH-435) . . . . . . . . . . . . . 31f.

31g. Low Income Child & Dependent Care Credit

(See Instructions on page 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31g.

31h. TOTAL PAYMENTS AND CREDITS (Add Lines 31a through 31g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31h.

7

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 00 00 029a. 29b. 29c. 29d.

30. TOTAL OF VT TAXES & CONTRIBUTIONS (Add Line 28 and Line 29d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.

0 0

Original refund received ________________ Refund due now __________________ Original payment_________________ Amount due now _______________

VOLUNTARY

CONTRIBUTIONS

CREDITS AND USE TAX

23. 24. 25.

CREDIT FOR INCOME TAX PAID TO OTHER VT TAX CREDITS (From Form IN-119) TOTAL VT CREDITS

STATE OR PROVINCE (From Form IN-112, (Add Lines 23 and 24)VT Schedule B, Line 6)

26. VT INCOME TAX AFTER CREDITS (Subtract Line 25 from Line 22, but not less than zero). . . . . . . . . . . . . . . . . . . . . 26.

27. USE TAX (See page 7 for instructions and chart) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.

28. TOTAL VT TAXES (Add Lines 26 and 27). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.

10

Signature Date Occupation Check if age Telephone Number (optional)65 or older

Signature. If a joint return, BOTH must sign. Date Occupation

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my

knowledge and belief, they are true, correct and complete. Preparers cannot use return information for purposes other than preparing returns.

Check here if authorizing the VT Department of Taxes to discuss this return and attachments with your preparer.

SIGN

HERE

Keep a copyfor yourrecords.

Preparer’s

Use Only

Preparer’s Date Check if Preparer’ssignature self- SSN or

employed PTIN

Firm’s name (or yours if self-employed) and address EIN

Preparer’s Telephone Number

Form IN-111

5

AMOUNT YOU OWE

35. If Line 30 is more than Line 31h, subtract Line 31h from Line 30. See page 9 for instructions on tax due. . . . . . . . . . . 35.

36.

9

8

--

--

+ + =

+ =

6

.,

.,

.,.,.,.,

.,

Carried forward from Line 22 _____________________________

., ,

., ,

., ,

., ,

0 0., ,

., ,

., ,

*061111299** 0 6 1 1 1 1 2 9 9 *

Nongame Wildlife Fund Children’s Trust Fund Vermont Campaign Fund

For amendedreturns only

Interest and Penalty on Underpayment of

Estimated Tax (Worksheet IN-152 or 152A) 37. Add Lines 35 and 36 . 37.

14

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

DUPLICATE OF PAGE 13

(IN-111, PAGE 1)

DUPLICATE OF PAGE 14

(IN-111, PAGE 2)

0 0

0 0

ADDITIONS TO VT TAX:

4. Tax on Qualified Plans including IRA,

MSA, & HSA (1040, Line 60) . . . . . . . . . . 4.

5. Recapture of Federal Investment

Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Tax from Federal Form 4972-Line 7 or 30 . . . 6.

7. Add Lines 4 through 6 . . . . . . . . . . . . . 7.

8. ADDITIONS TO VT TAX Multiply

Line 7 by 24%. . . . . . . . . . . . . . . . . . . 8.

9. Recapture of VT Credits

(See instructions) . . . . . . . . . . . . . . . . 9.

10. Add Lines 8 and 9. Enter on IN-111,

Section 4, Line 17 . . . . . . . . . . . . . . . 10.

0 0

SUBTRACTIONS FROM VT TAX:

11. Credit for Child and Dependent Care

Expenses (1040-Line 48;

1040A-Line 29) . . . . . . . . . . . . . . . . . . . . 11.

12. Credit for the Elderly or the Disabled

(1040-Line 49; 1040A-Line 30) . . . . . . . 12.

13. Investment Tax Credit. . . . . . . . . . . . . . . . 13.

14. VT Farm Income Averaging Credit (From

worksheet on reverse side of this form) 14.

15. Add Lines 11 through 14. . . . . . . . . . . 15.

16. SUBTRACTIONS FROM VT TAX

Multiply Line 15 by 24%. Enter on

IN-111, Section 4, Line 19. . . . . . . . . . 16.

0 0

PART I INCOME FROM STATE AND LOCAL OBLIGATIONS (See instructions on page 9)

1. Total interest and dividend income from all state and local obligations exempt from federal tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Interest and dividend income from Vermont state and local obligations included in Line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. INCOME FROM NON-VT STATE AND LOCAL OBLIGATIONS TO BE ADDED TO VT TAXABLE INCOME . . . . . . . . . . . . . . . . . . . . . . . 3.

Subtract Line 2 from Line 1, but not less than zero. ENTER ON IN-111, SECTION 3, LINE 12.

3. VT Income Tax (From Form IN -111, Section 4, Line 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Computed tax credit (Divide Line 1c by Line 2c and multiply result by Line 3)

Line 1c

Line 2cX Line 3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Amount of Income TAX paid to other state or Canadian province on income on Line 1c (See instructions on page 10) . . . . . . . . . . . . . . . . 5.

6. TOTAL OTHER STATES CREDIT: Enter the lesser of Line 4 or Line 5 here and on Form IN -111, Section 5, Line 23 . . . . . . . . . . . . . . . . . . 6.

Name of state or Canadian province COPIES OF NONRESIDENT RETURNS MUST BE ATTACHED

(Use standard two-letter abbreviation)Form IN-112

VT SCHEDULE B. VT Credit for income tax paid to other state or Canadian province FOR RESIDENTS AND PART-YEAR RESIDENTS ONLY

VT SCHEDULE A. Adjustments to Income or VT Tax

PRINT in BLUE or BLACK INK ATTACH TO FORM IN-111

Schedule C and worksheets on back

Taxpayer’s Social Security Number

Taxpayer’s Last Name First Name Initial

2006VERMONT

VT Tax Adjustments

and Credits

--

., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

., ,

0 0., ,

0 0., ,

., ,

0 0., ,

., ,

*061121199** 0 6 1 1 2 1 1 9 9 *

FORM

IN-112

PART II ADJUSTMENTS TO VT INCOME TAX

17

1a. 1b. 1c.

Adjusted Gross Income taxed in another state orCanadian province and also subject to Vermont tax

You must complete a separate Schedule B for each credit claimed. See instructions on page 10.

Capital Gains Exclusion (40% of long-term capitalgains reported to other state or province)

AGI eligible for credit (Line 1a minus Line 1b)

_=0 0

., ,0 0

., ,0 0

., ,

2a. 2b. 2c.

Adjusted Gross Income (From Form IN-111,Section 2, Line 10)

Capital Gains Exclusion (From Form IN-111,Section 3, Line 14c)

AGI eligible for credit (Line 2a minus Line 2b)

_=0 0

., ,0 0

., ,0 0

., ,

For Lines A - C, enter amounts from Federal Schedule D.

A. Smaller of Line 15 or 16 . . . . . . . . . . . . . . . . . . . . A. ______________

B. Line 18 ______________

C. Line 19 ______________

D. Add Lines B and C. If negative, enter zero . . . . . D. ______________

E. Subtract Line D from Line A . . . . . . . . . . . . . . . . . E. ______________

For Lines F, G, I, and J, enter amounts from Federal Form 4952. If you did not fileForm 4952, enter amount from Line E above on Line M below.

F. Line 4g ______________

G. Line 4e ______________

H. Multiply Line F by Line G . . . . . . . . . . . . . . . . . . . . H. ______________

I. Line 4b ______________

J. Line 4e ______________

K. Add Lines I and J . . . . . . . . . . . . . . . . . . . . . . . . . . K. ______________

L. Divide Line H by Line K . . . . . . . . . . . . . . . . . . . . . L. ______________

M. Subtract Line L from Line E. Entry cannot be less than zero.Also enter on Form IN-111, Section 3, Line 14b . M. ______________

CAPITAL GAINS WORKSHEET

VT FARM INCOME AVERAGING WORKSHEET

LOW INCOME CHILD & DEPENDENT

CARE WORKSHEET

FULL-YEAR RESIDENTS COMPLETE LINES 1 and 2:

1. Earned income tax credit from Federal Form 1040-Line 66a; 1040A-Line 40a; or, 1040EZ-Line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. VT EARNED INCOME TAX CREDIT (Multiply Line 1 by 32%). Enter the result here and on Form IN -111, Section 7, Line 31c . . . . . . . . . . . . . . . . $$ 2.

PART-YEAR RESIDENTS COMPLETE LINES 3-9:

A. Federal Amount $ B. VT Portion $

3. Wages, salaries, tips, etc. (from IN-113, Line 1) . . . . . . . . . . . . . . . . . . . . . . . . . 3. 3.

4. Other earned income (from IN-113, Lines 6, 10, & 12) 4. 4.

5. Total earned income (Add Lines 3 and 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 5.

6. Earned income tax credit adjustment (Divide Line 5B by Line 5A and enter here, but not more than 100%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Earned income tax credit from Federal Form 1040-Line 66a;

1040A-Line 40a; or, 1040EZ-Line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Multiply Line 7 by 32% and enter the result here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. VT EARNED INCOME TAX CREDIT (Multiply Line 8 by Line 6) Enter the result here and on Form IN -111, Section 7, Line 31c. . . . . . . . . . . . $$ 9.

0 00 0

0 0

0 0

0 0

Form IN-112

%

VT SCHEDULE C. VT Earned Income Tax Credit FOR RESIDENTS AND PART-YEAR RESIDENTS ONLY

Check toindicate loss�

Check toindicate loss�

.,

.,

0 0.,

0 0.,

0 0.,

.,

.,

0 0.,

0 0.,

.,

0 0.,

.

*061121299** 0 6 1 1 2 1 2 9 9 *

18

Enter figures in Column A from yourfederal worksheet and VT Form IN-113.

For VT Portion $, enter income earnedwhile a VT resident as shown on FormIN-113, Column B, Lines 1, 6, 10, & 12.

1. Accredited care provider amount. . . . . . . . . 1. __________________

2. Total care amount . . . . . . . . . . . . . . . . . . . . . 2. __________________

3. Divide Line 1 by Line 2 . . . . . . . . . . . . . . . . . 3. __________________

$__________ x _______ = $__________ x 50% = $ ___________Federal Credit Line 3 above Eligible Credit Low Income Credit(1040, Line 48; IN-111, Section 7,1040A, Line 29) Line 31g.

You may wish to also calculate your VT tax credit using 24% of the fullFederal credit and compare to the credit calculated on this worksheet todetermine which credit is best for you. You cannot take both credits.

WORKSHEETS

1. Calculate and enter here Federal income tax using FederalSchedule D, Federal Schedule D Worksheet, or Federal tax rate schedules as if Schedule J was not used. 1. $ __________

less

2. Enter Federal tax from Federal Schedule J Line 22 2. $ __________

3. Subtract Line 2 from Line 1. This is your VT FarmIncome Averaging Credit. Enter the result onVT Form IN-112, Part II, Line 14 . . . . . . . . . . . . . . . 3. $ __________

FULL-YEAR AND PART-YEAR RESIDENTS MUST ANSWER BOTH QUESTIONS.

A. Enter number of qualifying children B. Were you (or your spouse if filing a joint return) at least age 25 but under age 65 at the end of 2006? � Yes � No

If you answered “No” and do not have any qualifying children, you do not qualify for Earned Income Tax Credit.

NOTE: Returns with filing status of married filing separately or civil union filing separately do not qualify.

DUPLICATE OF PAGE 17

(IN-112, PAGE 1)

DUPLICATE OF PAGE 18

(IN-112, PAGE 2)

INC

OM

E

1. Wages, salaries, tips, etc. . . . . . . . . . . . . . . . . . . . . . . 1. 1.

2. Taxable interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 2.

3. Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 3.

4. Taxable refunds of state and local income taxes . . . 4. 4.

5. Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 5.

6. Business income or loss . . . . . . . 6. 6.

7. Capital gain or loss . . . . . . . . . . . 7. 7.

8. Taxable IRA distributions. . . . . . . . . . . . . . . . . . . . . . . 8. 8.

9. Taxable pensions and annuities . . . . . . . . . . . . . . . . . 9. 9.

10. Partnerships/ S Corporations,

and LLCs . . . . . . . . . . . . . . . . . . . . 10. 10.

11. Rents, royalties, estates,

trusts, etc.. . . . . . . . . . . . . . . . . . . 11. 11.

12. Farm income or loss. . . . . . . . . . . 12. 12.

13. Unemployment compensation . . . . . . . . . . . . . . . . . 13. 13.

14. Taxable social security . . . . . . . . . . . . . . . . . . . . . . . 14. 14.

15. Other: Specify____________ 15. 15.

(See instructions on page 44)

16. TOTAL INCOME

(Add Lines 1 –15) . . . . . . . . . . . . . 16. 16.

0 0

Form IN-113

Income Adjustment

Schedules2006

VERMONT

Nonresidents and Part-Year Residents Must Complete Schedules I and II

Full-Year Residents with Adjustments Complete Schedule II only

SCHEDULE I. Enter figures as they appear on your federal return or recomputed federal return in Column A and list the VT portion in Column B.

See instructions.

A. Federal Amount $ B. VT Portion $

PRINT in BLUE or BLACK INK

Be sure to put your name and Social Security number at the top of this page.Attach copies of pages 1 and 2 of your federal tax return and these adjustment schedules to your Vermont return.

continued on back

Taxpayer’s Social Security Number

Taxpayer’s Last Name First Name Initial

ATTACH TO FORM IN-111

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�Check toindicate loss�Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

Check toindicate loss�

--

., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

*061131199** 0 6 1 1 3 1 1 9 9 *

FORM

IN-113

21

17. IRA (1040-Line 32; or 1040A-Line 17); Keogh/SEP/SIMPLE (1040-Line 28):

Self __________________________________________17.

Spouse ________________________________________17. 17.

18. Student Loan Interest (1040-Line 33; 1040A-Line 18) . . . . . . . . . . . . . . . 18. 18.

19. Employee Deductions: Reservists, Performing Artists, Fee-basisGov’t Officials (1040, Line 24); Jury Duty Pay (1040, Line 34;1040A, Line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. 19.

20. Self-Employment Deductions: Tax (1040, Line 27), and HealthInsurance (1040, Line 29) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. 20.

21. Health Savings Account (1040, Line 25) and Archer MSA (1040, Line 23) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. 21.

22. Moving Expenses (1040, Line 26). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. 22.

23. Penalty on Early Withdrawal of Savings (1040-Line 30; 1040A-Line 16) . 23. 23.

24. Alimony Paid (1040, Line 31a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24. 24.

25. Domestic Production Activities (1040, Line 35) . . . . . . . . . . . . . . . . . . . . 25. 25.

26. TOTAL ADJUSTMENTS (Add Lines 17 – 25) . . . . . . . . . . . . . . . . . . . . . 26. 26.

27. Adjusted Gross Income (Subtract Line 26A from Line 16A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.

28. VT Portion of AGI (Subtract Line 26B from Line 16B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.

29. Non-VT Income (Subtract Line 28 from Line 27. Enter result here and on Schedule II, Line 31 below) . . 29.

Dates of VT residency in 2006: From ____________________________ to ____________________________

Name of state(s), Canadian province, or country during non-VT residency: ________________________________________________

30. Adjusted Gross Income If Schedule I completed, enter Line 27.Otherwise, enter Line 10 amount from IN-111 Section 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.

31. Non-Vermont Income . . . . . . . . . . . . . . . . . . . . . . 31.(Enter amount from Line 29 above)

(Part-Year Residents: For Lines 32-37, enter only income included in Line 28, Schedule I)

32. Military pay. Number of months on active duty____ (See instructions) . 32.

33. Federal Employment Opportunity income adjustment . . . . . . . . . . . . . . . 33.

34. Railroad Retirement income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.

35. VT State payments to a family for support of developmentallydisabled person(s) (See instructions on page 44) . . . . . . . . . . . . . . . . . . 35.

36. Americans with Disabilities Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.

37. Nonresident Commercial Film Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.

38. Total (Add Lines 31-37) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.

39. VT income (Subtract Line 38 from Line 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.

40. INCOME ADJUSTMENT % (Divide Line 39 by Line 30) Enter here and on Form IN -111, Section 4, Line 21. See instructions . . . . . . . . . . . . . . . $$ 40.

Form IN-113

AD

JU

ST

ME

NT

S T

O I

NC

OM

EV

T E

XE

MP

T I

NC

OM

E

SCHEDULE II. Adjustment for VT Exempt Income

Carried forward from

A. Federal Amount $ B. VT Portion $

%

__________________________________ _______________________________

Line 16A Line 16B

Check to indicate� loss

Check to indicate� loss

Check to indicate� loss

Check to indicate� loss

Check to indicate� loss

Check to indicate� loss

Check to indicate� loss

(Full-year VT residents enter 0 on Line 31)

.

*061131299** 0 6 1 1 3 1 2 9 9 *

22

Form IN-113, page 2

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

DUPLICATE OF PAGE 21

(IN-113, PAGE 1)

DUPLICATE OF PAGE 22

(IN-113, PAGE 2)

3. Commercial Film Production (32 V.S.A. §5826). . . . . . . . . . . . . 3.

4. Affordable Housing (requires prior approval by

VT Housing Authority) (32 V.S.A. §5930u) . . . . . . . . . . . . . . . . 4.

5. Charitable Housing (32 V.S.A. §5830c). . . . . . . . . . . . . . . . . . . . 5.

6. Qualified Sale of Mobile Home Park (32 V.S.A. §5828) . . . . . . 6.

Lines 7 - 13 require prior approval (see instructions)

7. Rehabilitation of Certified Historic Buildings (32 V.S.A. §5930n) . 7.

8. Older or Historic Buildings Rehabilitation (32 V.S.A. §5930p) . 8.

9. Commercial Building Code Improvements (32 V.S.A. §5930r) . 9.

10. Platform Lifts, Elevators, and Sprinkler Systems

(32 V.S.A. §5930q) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Historic Rehabilitation {32 V.S.A. §5930cc(a)} . . . . . . . . . . . . . . 11.

12. Facade Improvement {32 V.S.A. §5930cc(b)} . . . . . . . . . . . . . . . 12.

13. Code Improvements {32 V.S.A. §5930cc(c)} . . . . . . . . . . . . . . . . 13.

14. Add Lines 1-13 in Column C. If no entries on Lines 15-25, also enter on VT Form IN-111, Line 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

1. VT Higher Education Investment (32 V.S.A. §5825a) . . . . . . . . 1.

2. Angel Venture Capital Credit (32 V.S.A. §5930v). . . . . . . . . . . . 2.

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

For credits earned through an S-Corporation, LLC, LLP, or Partnership, enter name and FEIN of the entity. If credits from more than one business entity, fill out a separate IN-119 for each entity.

Name ofentity ________________________________________________ FEIN:

NOT AVAILABLE

15. Payroll Tax (32 V.S.A. §5930c) . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Research & Development Tax (32 V.S.A. §5930d) . . . . . . . . . 16.

17. Capital Investment Tax (32 V.S.A. §5930g) . . . . . . . . . . . . . . . 17.

18. Workforce Development Tax (32 V.S.A. §5930e) . . . . . . . . . . 18.

19. Export Tax (32 V.S.A. §5930f) . . . . . . . . . . . . . . . . . . . . . . . . . . 19.

20. High-Tech Business (32 V.S.A. §5930k) . . . . . . . . . . . . . . . . . . 20.

21. Sustainable Technology R & D Tax (32 V.S.A. §5930w). . . . . 21.

22. Sustainable Technology Export (32 V.S.A. §5930x) . . . . . . . . 22.

23. Add Lines 15-22 in Column C. Go to Tax Calculation on back. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.

ECONOMIC ADVANCEMENT TAX INCENTIVE CREDITS Requires prior approval from VT Economic Progress Council

*061191199** 0 6 1 1 9 1 1 9 9 *

Form IN-119 25

PRINT in BLUE or BLACK INK ATTACH TO FORM IN-111

Taxpayer’s Social Security NumberTaxpayer’s Last Name First Name Initial

2006VERMONT

VT Tax Credits

--

FORM

IN-119

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

0 0.,

Earned in 2006

Column A

Carryforward from previous years

Column B Column CEQUALS (=)PLUS (+)

Eligible Contributions in 2006

TIMES (x) .05 =

0 0.,

0 0.,

TIMES (x) .03 =

Column CTotal eligible credits

0 0., ,

0 0., ,

Tax Credit Calculation Worksheet

26. Enter the amount of adjusted VT income tax from Form IN-111, Line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.

27. Enter the amount of credit for income tax paid to another state or province from IN-111, Line 23. . . . . . . . . . . . . . . . . . . . . . . . . . . 27.

28. Subtract Line 27 from Line 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.

29. Enter amount from Line 14, Column C on front. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.

30. Enter the smaller of Line 28 or Line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.

31. Subtract Line 30 from Line 28, but not less than zero.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.

32. Multiply Line 31 by 75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.

33. Enter amount from Line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.

34. Enter the smaller of Line 32 or Line 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.

35. Subtract Line 34 from Line 31, but not less than zero.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.

36. Multiply Line 35 by 50%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.

37. Enter amount from Line 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.

38. Enter the smaller of Line 36 or Line 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.

39. Subtract Line 38 from Line 35, but not less than zero. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.

40. VT tax from VT Form IN-111, Line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.

41. Percentage of Schedule K-1 income

41a Schedule K-1 income from entity with EATI credit(s). If EATI

credits from more than one entity, see instructions. . . . . . 41a.

41b. Adjusted Gross Income Resident: From Form IN-111,

Line 10; Nonresident: From Form IN-113, Line 39 . . . . . . . 41b.

41c. Ratio of Schedule K-1 Income (divide Line 41a by Line 41b) (not greater than 100.00) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41c.

42. VT Tax attributable to Schedule K-1 Income (multiply Line 40 by Line 41c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.

43. Statutory Credit Limitation (multiply Line 42 by 80%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.

44. Credits. Enter Line 23 from this form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.

45. Maximum allowable EATI (Enter the smaller of Line 43 or Line 44).

If EATI credits from more than one entity, see instructions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.

Complete Lines 40 - 45 if you claimed Economic Advancement Tax Incentive (EATI) Credit. Otherwise go to Line 46.

46. Total credits. Enter the total of Lines 30, 34, 38, and 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.

47. Total Allowable credits. Enter the smaller of Line 28 or Line 46. Also enter this amount on VT Form IN-111, Section 5, Line 24. . 47.

Form IN-11926

*061191299** 0 6 1 1 9 1 2 9 9 *

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

0 0., ,

Form IN-119, page 2

.

24. Financial Services (go to Tax Calculation below) (32 V.S.A. §5922) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.

25. Venture Seed Capital Fund (go to Tax Calculation below) (32 V.S.A. §5830b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.

0 0.,

0 0.,

ALL eligibility questions must be answered. You must own and occupy the property as your housesite on April 1, 2007.

Q1. Were you domiciled in (legal resident of) VT all of calendar year 2006?. . . . . . . . . . . . . . � Yes, Go to Q2 � No, STOP

Q2. Were you claimed as a dependent in 2006 by another taxpayer? . . . . . . . . . . . . . . . . . . . � Yes, STOP � No, Go to Q3

Q3. Do you anticipate selling your VT housesite on or before April 1, 2007?. . . . . . . . . . . . . . � Yes, STOP � No, Complete Lines 8-16

27

Preparer’s Date

signature

Firm’s name

and address

Preparer’s

Phone No.

13. Household Income

(from Form HI-144, Line t)

7. Special Situations (See instructions for more information) Check if you are:

4. Business Use of Dwelling . . . . . . . . . . . 4.

8. Housesite Value

Amounts for Lines 8 - 11 are found on your 2006/2007 property tax bill.

11. Total Parcel Acres

Enter 999.99 if 1,000+

14. Allocable Mobile Home Lot

Rent (from Form LC-142,Line 16 or 23)

15. Municipal Tax Allocated from

Land Trust, Co-op, or NonprofitMobile Home Park

12. Ownership Interest9. Housesite Education Tax

5. Rental Use of Dwelling . . . . . . . . . . . . . 5.

6. Business or Rental Use of Improvements or Other Buildings.

Are improvements or other buildings located on your parcel, other than the dwelling, used for business or rented out? � Yes � No

0 0

0 0

Spouse or CU PartnerSocial Security Number

VT Resident SocialSecurity Number

VT Resident Last Name

Mailing Address (Number and Street/Road or PO Box)

City/Town

Initial

First Name

State Zip Code

Initial

First Name

--

-

--

Form HS-122The Declaration of Vermont Homestead can be filed on-line at www.state.vt.us/tax

FORM

HS-122THIS FORM REPLACES FORMS

HS-131, HS-138, AND HS-139

Homestead Declaration

AND Property Tax

Adjustment Claim

DUE DATE: April 17, 2007 PRINT in BLUE or BLACK INK

2007VERMONT

*071221199** 0 7 1 2 2 1 1 9 9 *

Spouse or CU Partner Last Name

Location of Homestead

number, street / road name (Do not use PO Box, “same”, or Town name)

State2 City/Town of Legal Residence on 04/01/2007

1 VT SchoolDistrict Code

- -

3. SPAN Number(REQUIRED)

(From your 2006/2007 property tax bill)

%.

%.

7aGrantor and sole beneficiary of a

revocable trust owning the property.

Life estate holder of the

property.

Residing in a dwelling

owned by a related farmer.

7b

7dHomestead property crossing town boundaries.

(File a declaration for each town.)7c

2007 DECLARATION OF VERMONT HOMESTEADMUST be completed by ALL VT residents who own and occupy a VT homestead on April 1, 2007.

1

PROPERTY TAX ADJUSTMENT CLAIM - For Household Income up to approx. $106,000. Attach Form HI-144.2

0 0.,

10. Housesite Municipal Tax

The Department will calculate your adjustment and send it directly to the town identified in the SPAN above. The town will reduce your

property tax bill by the adjustment amount. THERE IS A $10,000 MAXIMUM LIMIT ON THE ADJUSTMENT AMOUNT. You may use the

worksheet on page 43 to estimate your property tax adjustment.

0 0.,

0 0.,

16. Education Tax Allocated from

Land Trust, Co-op, or NonprofitMobile Home Park

0 0.,

0 0.,

0 0., ,

0 0 %..

3

Homeowner Signature Date If a joint return, Spouse or CU Partner must sign. Date

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,

they are true, correct and complete. Preparers cannot use return information for purposes other than preparing returns.

Check here if authorizing the VT Department of Taxes to discuss this return and attachments with your preparer.

SIGNHERE

Preparer’s

Use Only

Preparer’s SSN or PTIN Preparer’s EIN

Month Day Year

Claimant’sDate of Birth

0 0.,

Instructions for Form HS-122

Homestead Declaration AND Property Tax Adjustment Claim

DUE DATE File Form HS-122 as early as possible but no later than APRIL 17, 2007.

You may file HS-122 separately from your income tax. No extension of time to file is

available. An extension of time to file an income tax return does not apply to this form.

TIMELY FILING A return mailed through the U.S. Post Office is considered timely if

received at the Department within 3 business days of the due date. Electronic filing or

bringing the return to the Department in person must be on or before the due date to

be timely.

LATE FILED FORMS This form must be filed even if it is after the due date.

Homeowners filing the form after April 17 but on or before September 4 can still

declare a homestead and make a property tax adjustment claim. Homeowners filing

the form after September 4 have their property taxed at the nonresidential rate and are

ineligible to make a property tax adjustment claim. Late filing penalties apply to all

forms filed after April 17. See page 46 for description of late filing penalties.

AMENDING FORM HS-122 See page 46.

SEE PAGE 47 OF THE BOOKLET FOR information on Homestead, Nonresidential

Property, Selling the Property, and Special Situations and Ownership.

LINE-BY-LINE INSTRUCTIONS

Section 1 2007 Declaration of Vermont Homestead

The Declaration identifies property as a principal residence, or homestead, of a

Vermont resident. Different school property tax rates apply to homestead and

nonresidential properties.

You must file a declaration if you: 1) Expect to be a Vermont resident on April 1, 2007;

and 2) Own and occupy the VT property as your principal home on April 1, 2007.

ALL RESIDENT VT HOMEOWNERS MUST FILE THE DECLARATION SECTION.

The declaration must be filed even if you do not claim or are not eligible to claim a

property tax adjustment, or you do not have a requirement to file other returns. Only

one eligible owner needs to file the Declaration. Individuals holding a life estate or

living in the home they transferred to a revocable trust also need to file. See

instructions for Line 7. See page 47 for Deceased Homeowners.

Enter your social security number, name, and address and, if applicable, for your spouse

or civil union partner. Enter Claimant's date of birth. Example: Enter March 27, 1946

as 03 27 1946

Location: Enter the physical location of the homestead (street or road name).

Examples: 123 Maple Street 276 Route 12A

Please do not enter post office box, "same", "see above", or town name here.

Line 1 VT School District Code: Enter the 3-digit school district code where you will

pay school property tax and live on April 1, 2007. Most towns print this code on the

property tax bill. A school district code chart is available on our web site at

www.state.vt.us/tax or see page 11 of the income tax booklet. If your town is part

of a school district and you are not sure of your school district code, check with your

town clerk. $ Be sure to use the school district code and town where your housesite

is located. This may be different from the town in your mailing address.

Line 2 Legal Residence: Enter the town or city name of legal residence. If you live

where there is both a city and town with the same name, please specify city or town.

Examples: Rutland City or Rutland Town Barre City or Barre Town

Line 3 SPAN (School Property Account Number): This is a unique identification

number assigned by the town. Enter the 11-digit number printed on your property tax

bill, usually located in the Housesite information. Any property tax adjustment is

credited to the SPAN so be sure to verify your SPAN.

$ Use whole numbers and round to the nearest percentage for Lines 4 and 5.

Line 4 Business Use of Dwelling: See page 47 of booklet for further information.

Line 5 Rental Use of Dwelling: See page 47 of booklet for further information.

Line 6 Business or Rental Use of Improvements and Other Buildings on the

Property: � Check the applicable "Yes" or "No" box. Check the "Yes" box if any

improvements or other buildings are rented out or used for business.

Lines 7a - 7d Special Situations: Check the box if one of these situations applies to

you. Homes on farm property are defined in 32 V.S.A. §5401(7). See page 48 for

information on trusts and life estates.

COMPLETE IF YOUR HOUSEHOLD INCOME IS $106,000 OR LESS

SECTION 2 Property Tax Adjustment

$ Complete Form HI-144 FIRST. Supporting Documents Required: Form HI-144,

Household Income. If applicable, include the statement from your land trust,

cooperative, or nonprofit mobile home park showing the property tax allocated to your

lot or portion of property.

The property tax adjustment is paid directly to the town and credited towards your

2007/2008 property tax bill. The town issues you a property tax bill for the balance

due.

Maximum property tax adjustment is $10,000

Eligibility Questions

ALL questions must be answered to process return.

� Check the appropriate "Yes" or "No" box for Q1, Q2, and Q3 to determine your

eligibility.

PROPERTY TAX ADJUSTMENT CALCULATION INFORMATION

Line 8 Housesite Value from the 2006/2007 property tax bill. The housesite value

is the one set as of April 1, 2006. See Special Situations on page 48 for information

on a home purchased in 2007 or new construction.

Line 9 Housesite Education Property Tax Enter the housesite education property tax

shown on your 2006/2007 property tax bill.

Line 10 Housesite Municipal Property Tax Enter the housesite municipal property

tax shown on your 2006/2007 property tax bill.

Line 11 Total Parcel Acres Enter the total number of acres shown on your

2006/2007 property tax bill. If you have more than 2 acres and are receiving an

adjustment, you may receive a $10 per acre payment, up to 5 acres, on land over the

housesite 2 acres. Payment is made on whole acres only.

Line 12 Ownership Interest If you and the members of your household are the only

owners, enter 100.00% on this line. If someone other than a member of the household

is an owner, see Ownership Situations on page 47 for information on ownership

interest and issues such as divorce or a duplex.

Line 13 Household Income Enter the amount on Form HI-144, Line t. If $106,000 or

more, you are not eligible.

Line 14 Allocable Mobile Home Lot Rent If your mobile home is located in a for-

profit park, obtain a completed Form LC-142, Landlord Certificate.

Line 15 Municipal Property Tax Allocated from Land Trust, Cooperative, or

Nonprofit Mobile Home Park Obtain a statement from your land trust, cooperative,

or nonprofit mobile home park showing the municipal property tax allocable to your

housesite. Enter that amount here and include the statement with this form.

Line 16 Education Property Tax Allocated from Land Trust, Cooperative, or

Nonprofit Mobile Home Park Obtain a statement from your land trust, cooperative,

or nonprofit mobile home park showing the education property tax allocable to your

housesite. Enter that amount here and include the statement with this form.

You can calculate your property tax adjustment by completing the worksheet on page 43.

Section 3 Signature REQUIRED If a joint filing, both filers must sign.

Date Write the date on which the form was signed.

Disclosure Authorization To give the Department authorization to discuss your 2007

Declaration of VT Homestead and Property Tax Adjustment with your tax preparer,

� check this box and include the preparer's name.

Preparer If you employed a paid preparer, he/she signs the claim. The preparer

enters his/her social security number or PTIN and, if employed by a business, the EIN

of the business. If someone other than the filer(s) prepared the return without

charging a fee, that preparer's signature is optional.

Form HS-12228

NEWWW

DUPLICATE OF PAGE 27

(HS-122, PAGE 1)

DUPLICATE OF PAGE 28

(HS-122 Instructions)

3. ALLOCABLE RENT (From Form LC-142, Line 16 or Line 23) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

Is more than 25% of this rental used for business purposes? If YES, see instructions. If NO, enter 100.00% on Line 4.

4. HOME USE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. ALLOWABLE RENT FOR REBATE CLAIM (Multiply Line 3 by Line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. HOUSEHOLD INCOME (From Form HI-144, Line t) If more than $47,000, you are not eligible. . . . . . . . 6.

7. MAXIMUM PERCENTAGE OF INCOME FOR RENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. MAXIMUM RENT FOR HOUSEHOLD INCOME (Multiply Line 6 by Line 7 and enter result here) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

If Line 8 is more than Line 5, you do not qualify for a renter rebate.

9. RENTER REBATE AMOUNT (Subtract Line 8 from Line 5 and enter result here. If result is zero, you do not qualify for a rebate.) . . . . . $ 9.

If filing this form with the VT Income Tax Return, also enter this amount on Form IN-111, Section 7, Line 31d.

ALL eligibility questions must be answered. You must have rented all 12 months in 2006. See instructions on page 47 for one exception.

Q1. Were you domiciled (legal resident) in VT all of calendar year 2006? . . . . � Yes, Go to Q2 � No, STOP. You are not eligible.

Q2. Were you claimed as a dependent by another taxpayer in 2006?. . . . . . . � Yes, STOP. You are not eligible. � No, Complete this form.

Before doing rebate calculation, complete Form HI-144, Household Income.

YOU MUST ATTACH FORM HI-144 AND FORM LC-142 TO THIS FORM.REBATE CALCULATION

0 0

0 0

0 0

0 0

0 0

0 0

State2 City/Town of Legal Residence on 12/31/2006

1 VT SchoolDistrict Code

Form PR-141

Must Be Filed With: Form LC-142, Landlord’s Certificate, and Form HI -144, Household Income

Location ofrental property

%

.,

.,

.,

.,

.

number, street / road name (DO NOT use PO Box, “same”, or Town name)

Month Day Year

Claimant’sDate of Birth

Spouse or CU PartnerSocial Security Number

Claimant’s SocialSecurity Number

Claimant’s Last Name

Mailing Address (Number and Street/Road or PO Box)

City/Town

Initial

First Name

First Name

State Zip Code

Spouse or CU Partner Last Name

Initial

--

-

--

*061411199** 0 6 1 4 1 1 1 9 9 *

FORM

PR-141Renter Rebate Claim2006

VERMONT FOR HOUSEHOLD INCOME OF $47,000 OR LESS

For the year Jan. 1–Dec. 31, 2006

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my

knowledge and belief, they are true, correct and complete. Preparers cannot use return information for purposes other than preparing returns.

Check here if authorizing the VT Department of Taxes to discuss this return and attachments with your preparer.

SIGN

HERE

Keep a copyfor yourrecords.

Preparer’s

Use Only

Check if Preparer’s SSN or PTINPreparer’s signature Date self-employed

Firm’s name (or yours if self-employed) and address EIN

Preparer’s Telephone Number

Telephone Number (optional)Your signature Date

Spouse or CU Partner signature. If a joint return, BOTH must sign. Date--

--

31

DUE DATE: September 4, 2007 PRINT in BLUE or BLACK INK

%.

MAIL TO: Vermont Department of Taxes, PO Box 1881, Montpelier, VT 05601-1881

.,

If Line 6 Household Income is: $0 – 9,999 $10,000 – 24,999 $25,000 – 47,000

Enter this % on Line 7: 2.0% 4.5% 5.0%

The Renter Rebate Program assists eligible renters and refunds rent exceeding apercentage of household income.

LANDLORD’S CERTIFICATE You need a Form LC-142, Landlord's Certificate,completed by your landlord. Landlords with more than 4 residential rental unitsmust provide the completed certificate by January 31. Landlords with 4 or lessresidential rental units provide the certificate upon your request. Landlordscomplete the section on property taxes only upon request.

UNABLE TO GET A CERTIFICATE FROM YOUR LANDLORD? You may still filefor the renter rebate. Complete a Landlord's Certificate and attach copies of yourcancelled checks or rent receipts for rent paid. Also include a letter explaining whyyou did not get a Landlord's Certificate and include your landlord's name, address,and telephone number. To obtain a Landlord Certificate, contact the Department at(802) 828-2515, or e-mail [email protected] or fax to (802) 828-2701 and askfor Form LC-142.

RETURN DUE DATE: SEPTEMBER 4, 2007 No extension of time to file.Returns filed after this date cannot be accepted, regardless of the reason theclaim could not be filed on time.

TIMELY FILING A return mailed through the U.S. Post Office is considered timelyif received at the Department within 3 business days of the due date. Bringing thereturn to the Department in person must be on or before the due date to be timely.

REQUESTS FOR ADDITIONAL INFORMATION You may be asked to supplyadditional information to clarify items on your claim. Such a request does notnecessarily mean that you filed improperly or that your claim has been selected foran audit. These requests are a routine part of processing claims.

MISSING INFORMATION OR INCOMPLETE FILING Claims with incomplete ormissing information are not considered filed. The information must be provided bythe September 4 filing deadline or our request date, whichever is later.Information received after that time cannot be accepted, the return is consideredunfiled, and the claim is denied.

AMENDING or CHANGING RENTER REBATE INFORMATION Correctinghousehold income for a timely filed rebate claim is the only change allowed. Thechange must be within three years of the filing due date. Use the applicable taxyear Form HI-144 and complete with the correct income. Mark "AMENDED" on theHI-144 and send to the Department.

ELIGIBILITY FOR RENTER REBATEYou must meet ALL of the following eligibility requirements:

� You were a legal resident of VT for the entire calendar year 2006; and� You were not claimed in 2006 as a dependent of another taxpayer; and� Your household income in 2006 does not exceed $47,000; and� You are the only person in the household making a renter rebate claim;

and� You rented for all 12 months in 2006. See page 47 for the one exception.

NOTE: If your landlord charges below market rate rent for the unit because youare related to the landlord, you hold an ownership interest in the rental unit, or forsome other reason, and the property tax on the rental unit will be the basis for therebate, the allowable property tax may be adjusted to reflect the ratio of the rentto the fair market rent established by the Federal Housing and Urban DevelopmentAgency. Please see Technical Bulletin TB-28 available on the Department’swebsite or call 1-866-828-2865 (toll-free in VT) or 802-828-2865 (local or out-of-state).

$ DECEASED RENTER: You may not file a claim on behalf of a deceased person.The right to file a renter rebate claim is personal to the Claimant and does notsurvive the Claimant's death.

$ NURSING OR RESIDENTIAL CARE HOME: Rebate claim is for the room chargeonly. Payment by Medicaid on behalf of the Claimant to the nursing home cannotbe included. Services such as heat, electricity, personal services, medical services,etc., are deducted from the total. Generally, the room charge is 25% of the home'stotal charges to the person. For a percentage greater than 25%, the nursing homeor residential care home must provide a breakout of costs.

NOTE: If the person residing in a nursing or residential care homeowns a homestead with a sibling or spouse, the person can claim arenter rebate or the sibling or spouse in the homestead can apply forproperty tax adjustment. They cannot do both.

LINE-BY-LINE INSTRUCTIONS

$ Complete Form HI-144 FIRST. If Line t is more than $47,000,you are ineligible.

Supporting Documents Required: Forms HI-144 and LC-142

Claimant's Date of Birth Enter your date of birth (you are the claimant).Example: March 31, 1946, enter as 03 31 1946.

Claimant Information REQUIRED entries. Enter your name, your spouse's orcivil union partner (if applicable) name, mailing address and social securitynumber(s). The Renter Rebate is issued to the name(s) and address on record. TheClaimant is the leaseholder or the person responsible for the rent. Only oneclaimant per household is allowed, but there can be joint claimants (such asspouses or civil union partners).

Line 1 VT School District Code: REQUIRED entry. Go to the table on page 11and select the three-digit school district code for the town where you lived onDecember 31, 2006.

Line 2 Legal Residence: REQUIRED entry. Enter your legal residence as ofDecember 31, 2006. Your legal residence is where you live, and it may be differentfrom your mailing address. If you live where there is both a city and town with thesame name, please specify the one in which you reside. For example: St. AlbansCity or St. Albans Town.

Location of Rental Property: REQUIRED entry. Enter the physical location ofthe homestead (street or road name). Examples: 133 Main Street, Apt 2C; 425Farm Road 210 US Rt 7N Please do not enter post office box, "same", "see

above," or the town name.

Eligibility Questions REQUIRED entries.

� Check the appropriate "Yes" or "No" box for Q1 and Q2 to determine youreligibility.

Rebate Calculation

Line 3 Allocable Rent Enter from the Landlord's Certificate, Form LC-142, thegreater of Line 16 or Line 22. This will be either 21% of rent paid for the calendar yearor the property tax allocable to your rental unit. MORE THAN ONE LANDLORDCERTIFICATE: The total months rented must equal 12. Add the greater of Line 16 orLine 22 from each certificate and enter on this line. File all LC-142s with your claim.

Line 4 Home Use If you use more than 25% of your rental unit's floor space forbusiness purposes, the allowable rent amount is adjusted. The percentage of busi-ness use is generally the same percentage used on your Federal income tax returnwhen there is more than 25% business use. To calculate business use, divide thesquare feet used for business by the total square feet in the rental unit. Example:You use an 11' x 12' room for an office and inventory storage. Your rental unit is484 square feet (including the business use). Your business use is 11 x 12 = 132sf / 484 = .27 business use. Entry on Line 4 for home use is 73 (100% - 27%).

Line 5 Allowable Rent for Rebate Claim Multiply Line 3 by Line 4 and enter theresult here. If Line 4 is 100.00%, then Line 5 will equal Line 3.

Line 6 Household Income Enter the amount from Form HI-144, Line t. Ifhousehold income is more than $47,000, you are not eligible. See page 49 fordefinitions of household income.

Line 7 Maximum Percentage of Income for Rent Use the chart to find yourhousehold income group and applicable percentage. Enter that percentage here.

Line 8 Maximum Allowable Rent for Household Income Multiply Line 6 byLine 7 and enter the result here. If Line 8 is more than or the same as Line 5, youare not eligible.

Line 9 Renter Rebate Amount Subtract Line 8 from Line 5. This is your 2006renter rebate. $ If you are filing the renter rebate claim with your 2006 VTincome tax return, also enter this amount on Form IN-111, Section 7, Line 31e. Youwill be issued one check combining any income refund or rebate due you.

Signature REQUIRED Sign the claim. If a joint filing, both filers must sign theclaim.

Date Write the date on which the claim form was signed.

Disclosure Authorization If you wish to give the Department authorization todiscuss your 2006 Renter Rebate Claim with your tax preparer, � check this boxand include the preparer's name.

Preparer If you employed a paid preparer, he/she must also sign the claim. Thepreparer must enter his/her social security number or PTIN and, if employed by abusiness, the EIN of the business. If someone other than the filer(s) prepared thereturn without charging a fee, then that preparer's signature is optional.Form PR-141

Instructions for Form PR-141 Renter Rebate Claim

32

DUPLICATE OF PAGE 31

(PR-141, PAGE 1)

DUPLICATE OF PAGE 32

(PR-141 Instructions)

g. Alimony, support money, child support________________________________________________________________________________________________________________

g. g. g.

c. Unemployment compensation/worker’s compensation _______________________________________________________________________________________________

c. c. c.

0 00 00 0

For the year Jan. 1–Dec. 31, 2006

PRINT in BLUE or BLACK INK

This form must be attached to Renter Rebate Claim (Form PR-141) OR

Homestead Declaration AND Property Tax Adjustment Claim (Form HS-122)

Read instructions before completing form.

e. Interest and dividends ________________________________________________________________________________________________________________________________

e. e. e.

f. Interest on U.S., state, and municipal obligations, taxable and nontaxable __________________________________________________________________________

f. f. f.

l. Farm/partnerships/S Corporations/LLCs Income: If the amount is a loss, enter zero. See instructions for offsetting a loss. ___________________

l. l. l.

k. Rental income: If the amount is a loss, enter zero. See instructions for offsetting a loss. _______________________________________________________

k. k. k.

j. Pensions, annuities, retirement fund distributions. See instructions. ________________________________________________________________________________

j. j. j.

d. Wages, salaries, tips, etc. (See instructions for reportable dependent’s income.) ______________________________________________________________________

d. d. d.

m. Other income (See instructions for examples of other income). Please specify ___________________________________________________________

m. m. m.

h. Business income: If the amount is a loss, enter zero. See instructions for offsetting a loss. ____________________________________________________

h. h. h.

i. Capital gains, taxable and nontaxable. If the amount is a loss, enter zero. See instructions for offsetting a loss. _____________________________

i. i. i.

n. TOTAL INCOME: Add Lines a through m__________________________________________________________________________________________________________

n. n. n.

b. Social security/railroad retirement/veteran’s benefits, taxable and nontaxable ____________________________________________________________________

b. b. b.

a. Cash public assistance/welfare ______________________________________________________________________________________________________________________

a. a. a.., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

0 00 00 0., ., .,

Form HI-144

Household Income2006VERMONT

1. Claimant 2. Spouse/CU Partner 3. Other Persons

List the names and Social Security Numbers of all other persons who had income and lived with you during 2006. Include their income in Column 3. Use a separate sheet of paper if needed.

1. ___________________________________________________________ 2. ________________________________________________________

continued on back

Claimant’s Last Name First Name Initial

Spouse or CU Partner Social Security Number

Claimant’s Social Security Number

Spouse or CU Partner Last Name First Name Initial

--

--

*061441199** 0 6 1 4 4 1 1 9 9 *

FORM

HI-144

35

1. Claimant 2. Spouse/CU Partner 3. Other Persons

(Amount from Line n, Column 1) (Amount from Line n, Column 2) (Amount from Line n, Column 3)

Form HI-144, page 2

0 0

0 0 0 0 0 0

o. Social security and Medicare tax withheld on wages included above and/or self-employment tax paid, less any amount deducted from Federal Form1040-Line 27. Attach W-2 forms and/or Federal Schedule SE if not included with income tax filing. _____________________________________________________

o. o. o.

$ $$

r. TOTAL ADJUSTMENTS Add Lines o, p, and q. ___________________________________________________________________________________________________________

r. r. r.

q. Adjustments to income from Federal Form 1040-Line 36 or 1040A-Line 20 _________________________________________________

q. q. q.

t. TOTAL HOUSEHOLD INCOME Add the totals of Columns 1, 2, and 3 Line s.______________________________________________________________________________

TOTAL $$ t.

Form HI-144

p. Child support paid. You must attach proof of payment. See instructions.Support paid to ________________________________________________________________________SSN $$

p. p. p.

s. ADJUSTED INCOMES OF HOUSEHOLD MEMBERS Subtract Line r from Line n. __________________________________________________________________________

s. s. s.

RENTERS:

If total Household Income is $47,000 or less, enter Line t on Form PR-141, Line 6. Claims can be filed up to September 4, 2007.

If more than $47,000, you do not qualify for a renter rebate.

HOMEOWNERS:

NEW this year, homeowners file only one form (Form HS-122) for Declaration of Vermont Homestead and the Property Tax Adjustment Claim.

All Homeowners MUST complete Form HS-122, Sections 1 and 3, if they owned and occupied the property as their principal home on April 1, 2007.

If you are only declaring a Vermont homestead, you can skip Section 2.

Homeowners with household incomes up to $106,000 on Line t of this form should complete all sections of Form HS-122. You may be eligible

for a property tax adjustment.

Form HS-122 Due Date - April 17, 2007. Homeowners filing a late HS-122 by September 4, 2007 can still declare property as a homestead for the

education property tax rate and apply for property tax adjustment. However, the following late filing penalties apply: (1) The town bills and collects a

penalty of 1% of correct education tax; and (2) If you are eligible for a property tax adjustment, the amount of the adjustment is reduced by $15.

Homeowners filing after September 4, 2007 will be taxed at the nonresidential education property tax rate for 2007, will be ineligible for property tax

adjustment in 2007, and the 1% penalty will apply.

CHANGE IN PAYMENT OF PROPERTY TAX ADJUSTMENT:

The 2007 property tax adjustment amount goes directly to your town as a credit towards your 2007/2008 property tax bill. Beginning July 2007, the

Vermont Department of Taxes will send notification to homeowners of the amount credited to their property tax bill.

--

.,

., ., .,

0 0 0 0 0 0., ., .,

0 0 0 0 0 0., ., .,

0 0 0 0 0 0., ., .,

0 0 0 0 0 0., ., .,

1. Claimant 2. Spouse/CU Partner 3. Other Persons

*061441299** 0 6 1 4 4 1 2 9 9 *

36

DUPLICATE OF PAGE 35

(HI-144, PAGE 1)

DUPLICATE OF PAGE 36

(HI-144, PAGE 1)

Program

Maximum income*

WITHOUT Medicareyou receive

WITH Medicareyou receive

You pay per person

QUESTIONS APPLICANT SPOUSE OR CIVIL UNION PARTNER

1. What is your date of birth?

2. Are you a U.S. citizen? If no, include proof of legal residence.

3. Do you receive Medicare?

3a. Medicare claim number

3b. Part A (hospital coverage)

3c. Part B (medical coverage)

3d. Part C (managed care)

3e. Part D (drug coverage)

4. Have you chosen a Part D Prescription Drug Plan?

4a. Plan name

4b. Contract ID #

4c. Plan ID #

4d. Plan start date

5. Have you applied for “extra help” for Part D throughSocial Security?

5a. If granted, begin date

5b. If denied, what reason did Social Security give you?

6. If you did not apply, what was your reason?

� Yes � No

� Yes � No

� Yes, granted

� Yes, denied � No

� Yes, granted

� Yes, denied � No

� Yes � No

� Yes � No

� Yes � No

� Yes � No

VHAP-Pharmacy/VPharm-1

$ 1,269 per month

Prescription drugs

Prescription drugs not coveredby Medicare

VScript/VPharm-2 VScript Expanded/VPharm-3

$ 1,481 per month $ 1,904 per month

Long-term prescription drugs and discount on short-termprescription drugs

Long-term prescription drugs and a discount on short-termprescription drugs not covered by Medicare

Healthy Vermonters

$ 3,384 per month

Discount on prescription drugs

Discount on prescription drugs notcovered by Medicare

$15 per month $20 per month $42 per month Discounted price for each prescription

This application is for programs that help Vermonters pay for prescription drugs. People who have a disability or are age 65 or older may be eligible for

one of these programs depending on income. The Healthy Vermonters program also helps others with moderate incomes. VHAP-Pharmacy, VScript and

VScript Expanded are for people who do not get Medicare. VPharm is for people who do get Medicare. Please answer each question below for

the people applying for coverage.

* Maximum income shown is for one-person household. Maximum income increases with each additional household member.

Please complete the other side and sign this application �

Pharmacy Programs ApplicationVPharm, VHAP-Pharmacy, VScript, VScript Expanded, and Healthy Vermonters Programs

Vermont Department for Children and Families

Economic Services Division

HC 201P

R 10/06

39

Begindate Premium

Begindate

Begindate

Premium

Premium

Begindate Premium

Begindate Premium

Begindate

Begindate

Premium

Premium

Begindate Premium

Overincome

Failed tocooperate� �

Other;explain:

Overresource

Overincome

Failed tocooperate� �

Other;explain:

Overresource

Over income �

�Other;explain:

Over resource Over income �

�Other;explain:

Over resource

Name __________________________________________________________________ Social security no. ________________________Last First Middle initial

Mailing address ___________________________________________________________________________________________________Number Street PO Box or RD City or Town State Zip code

Marital status � SIngle � Married � Civil union � Separated � Divorced � Widowed Sex � M � F

Spouse or CU partner __________________________________________ Social security no. ________________________Last First Middle initial

Is this person also applying? � Yes � No

Are any of your children or stepchildren who are under age 21 living with you? � Yes - ages of children ________________ � No

Please list all current gross income (before taxes, Medicare, and other deductions) for yourself and your spouse or civil union

partner, if he or she lives with you. Please answer all questions.

After signing this form, please mail it to: Vermont Department of Taxes, 133 State Street, Montpelier, VT 05633-1401

If you have questions or for current income levels, call Health Access Member Services at 1-800-250-8427.

To use telephone service for people with hearing disabilities, call 1-888-834-7898.40

QUESTIONS APPLICANT SPOUSE OR CIVIL UNION PARTNER

7. Do you have private insurance that covers prescriptiondrugs? (Do not include discount programs)

7a. Name of insurance company

7b. Address

7c. Policy number

7d. Does this drug coverage have an annual limit?

I have reviewed the statements above about my rights and responsibilities and I understand them.

________________________________________________________________________________________________________________________Printed name of applicant Signature of applicant Date Telephone number

________________________________________________________________________________________________________________________Signature of person witnessing or helping to fill out this form Date

Please read the following rights and responsibilities and sign below:

The information I have provided is correct to the best of my knowledge. I

understand this information may be verified. I understand that I must

report all changes, such as changes in income, insurance, address, and

household size. I understand the information I have given is private and

cannot be seen by the public.

I understand that federal regulation requires that I provide my social

security number and that it may be used to check my statements with

other agencies, such as the Social Security Administration and the Internal

Revenue Service, and for quality control reviews. This requirement may be

waived for members of a religious organization that objects to furnishing a

social security number.

I understand that intentionally making a false or misleading statement, or

concealing or withholding facts, may result in paying the Department, in

cash, the value of the prescription discounts I received and may subject me

to civil or criminal prosecution.

I understand that I have the right to treatment that is fair and does not

discriminate. I may not be treated differently because of race, color,

national origin, marital status, sex, sexual orientation, age, religion,

political beliefs, place of birth, or because of physical, mental, or emotional

conditions. If I have a complaint about being treated differently, I may

contact the Office for Civil Rights, Health and Human Services, Room

506-F, 200 Independence Avenue, S.W., Washington D.C. 20201. If I

believe I have been discriminated against because of a disability, I may

contact: Deputy Commissioner, Department for Children and Families,

Economic Services Division, 103 South Main Street, Waterbury, VT

05671-1201.

� Yes � No

� Yes � No

� Yes � No

� Yes � No

APPLICANT SPOUSE OR CIVIL UNION PARTNER

TYPE OF INCOME AMOUNT HOW OFTEN? AMOUNT HOW OFTEN?(before deductions) (Mo./Yr.) (before deductions) (Mo./Yr.)

Social security retirement $ per � None $ per � None

Social security disability $ per � None $ per � None

SSI $ per � None $ per � None

Railroad retirement $ per � None $ per � None

Veteran’s benefits $ per � None $ per � None

Pensions or annuities $ per � None $ per � None

Interest or dividends $ per � None $ per � None

Self-employment, including rental $ per � None $ per � None

(If yes, please send copy of most recent federal income tax return including all schedules.)

Wages in last 30 days $ � None $ � None

______________________________________ ______________________________________Employer Hrs. per wk. Hourly wage Employer Hrs. per wk. Hourly wage

Other income in last 30 days $ � None $ � None

(Such as unemployment, worker’s compensation, or alimony)

Please describe ____________________________________________ ____________________________________

Do you pay for day care fora child or an incapacitated adult? $ per month � No $ per month � No

Do you pay child support or alimony? $ per month � No $ per month � No

INCOME (Total, You and Spouse or CU Partner combined)

a. Cash public assistance/welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. ___________________

b. Social Security/railroad retirement/veteran’s benefits, taxable and nontaxable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. ___________________

c. Unemployment compensation/worker’s compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. ___________________

d. Wages, salaries, tips, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d. ___________________

e. Interest and dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e. ___________________

f. Interest on U.S., state and municipal obligations, taxable and nontaxable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f. ___________________

g. Alimony, support money/child support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g. ___________________

h. Business income: If you have a loss, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . h. ___________________

i. Capital gains, taxable and nontaxable. If you have a loss, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i. ___________________

j. Pensions and annuities, taxable and nontaxable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . j. ___________________

k. Rental income: If you have a loss, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . k. ___________________

l. Farm/partnership/Subchapter S income: If you have a loss, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l. ___________________

m. Other income. Please specify___________________________________ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m. ___________________

n. SUBTOTAL: Add lines a through m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n. ___________________

o. LESS adjustments to income from Federal Form 1040, Line 36 or 1040A, Line 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . o. ___________________

p. TOTAL INCOME: Subtract Line o from Line n and enter the result here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. ___________________

�NR OFFICIAL USE ONLY

* See back for help finding your Verizon Customer Code.

Your Name ________________________________________________

Spouse or CU Partner Name _____________________________________

Name on phone bill ___________________________________________ Name of your telephone company ____________________________

Street, P.O. Box or RD__________________________________________ City _______________________ State ____ Zip Code ___________

OR

LIFELINE

You may be eligible for a credit of at least $13.50 toward payment of your monthly Vermont basic telephone

charge. To apply, return this form by June 15, 2007. You must reapply for the credit each year.

2006 VERMONT

The following section must be filled out completely or your application will be returned and benefits will be delayed.

I declare under penalties of perjury this application is true, correct, and complete to the best of my knowledge. If prepared by a person other than the applicant, this declaration further

provides that under 32 V.S.A. §5901 this information has not been and will not be used for any other purpose, or made available to any other person other than for the preparation of this

application unless a separate valid consent form is signed by the applicant and retained by the preparer. I authorize the Vermont Department of Taxes to disclose this information and other

information necessary to process the Lifeline Credit to the Secretary of Human Services.

____________________________________________________________ _________________________________________________________Subscriber’s signature Date Signature of preparer if other than taxpayer Date

____________________________________________________________ _________________________________________________________Spouse or Civil Union Partner signature (if filing jointly) Date Address of preparer

Telephone NumberCustomer Code *

(Verizon Customers)

Social Security Number

Application for LifelineTelephone Service Credit

If you will be UNDER 65 on June 15, 2007.Complete this checklist to see if you are eligible:

Are you a Vermont resident? � Yes � No

Will you be younger than 65 on June 15, 2007? � Yes � No

Was your 2006 household income for you and your spouse less than

$19,800 (from Income section below, Line p.)? � Yes � No

If you answer “Yes” to all questions, you are eligible.

If you will be 65 or OLDER by June 15, 2007.Complete this checklist to see if you are eligible:

Are you a Vermont resident? � Yes � No

Will you be at least 65 by June 15, 2007? � Yes � No

Was your2006 household income for you and your spouse less than

$23,100 (from Income section below, Line p.)? � Yes � No

If you answer “Yes” to all questions, you are eligible.

–– –

Yours

Spouse or

CU Partner

Yours

Spouse or

CU Partner

BirthdateMonth Day Year

SexF/M

41

What is the Lifeline Telephone Credit?The Lifeline program provides a credit of at least $13.50 on the

monthly telephone bills of income-eligible Vermont residents.

Who is eligible for the Lifeline Telephone Credit?Two groups of Vermont residents with telephone service are eligible

for the credit. You are eligible if you reside in Vermont, have phone

service, and � you will be 65 or older by June 15, 2007 and your household

income is less than $23,100;

OR� you are under 65 and your household income is less than

$19,800

You need to submit an application for Lifeline credit each year.

What income must be included?You must include your Adjusted Gross Income (Federal Form 1040,

Line 37; or 1040A, Line 21; or 1040EZ, Line 4). This is before

deduction of any loss from a trade or business, partnership, small

business corporation, rental property or capital loss. This is added to

all other taxable and non-taxable income such as alimony, support

money, cash public assistance and relief, cost of living allowance,

serviceman’s dependent allowances, gross amount of pensions and

annuities, railroad retirement benefits, Social Security payment,

veteran’s benefit act payments, nontaxable interest received from

Federal or state instrumentality, unemployment and worker’s

compensation, gross amount of “lost time” insurance and total

capital gains. It does not include gifts from nongovernmental

sources, food stamps, relief in kind supplied by a government

agency, or payments made by the State for foster care or care of a

developmentally disabled person.

When and how do you apply?All eligible telephone subscribers should mail the completed

application on or before June 15, 2007 to:

Vermont Department of Taxes

133 State Street

Montpelier, VT 05633-1401

Applications submitted after June 15, 2007 will not be considered

for the credit this year. However, this deadline may be waived by the

Agency of Human Services if the application was delayed for good

cause, such as sickness or disability.

The application may be submitted with your Vermont tax forms. If

you are not required to file, you may send just this application to the

Vermont Department of Taxes.

The Vermont Agency of Human Services processes your application.

Your telephone company will receive notice of your eligibility and

apply the credit to the telephone account of the name, telephone

number and customer code you write on this application. It is very

important the information on the application matches the

information with your telephone company. Before mailing your

application, check your telephone bill for the spelling of your

name, your telephone number, and the customer code that

follows your telephone number. If it is convenient, attach a copy

of your telephone bill to this application.

Where do I find my Verizon Customer Code?If you are a Verizon customer, your Customer Code is the three digits

after your telephone number on your bill. Your phone number, plus

these three digits, is your Verizon account number.

When will the Lifeline Credit begin?If this is the first time you applied for the Lifeline credit, it may take

up to three (3) months for the credit to appear on your telephone bill.

Do all telephone companies participate in Lifeline?No. Only the following companies must offer Lifeline: Franklin

Telephone; Fairpoint/Northland Telephone; Shoreham Telephone;

TDS (Ludlow, Northfield, and Perkinsville); Topsham Telephone;

Unicel; Verizon; Vermont Telephone; and Waitsfield/Champlain

Valley Telecom. Other companies may offer a Lifeline discount but

are not required to do so and do not get reimbursed for their Lifeline

costs.

How can I get answers to my questions about Lifeline?For more information about the application or the credit

• Seniors call the Senior HelpLine at 1-800-642-5119 to reach your

local area agency on aging;

• Under 65 call the AHS Economic Services Division (formerly

PATH) at 1-800-287-0589.

Persons who receive Reach Up, Food Stamps, Medicaid, or Fuel

Assistance benefits may be eligible to apply year-round for Lifeline

through the AHS Economic Services Division. To apply, contact your

Economic Services Division district office.

A Change for Some Verizon Customers

Verizon now offers a Lifeline discount on its service packages in

addition to its low use and standard measured service. If you were

previously denied the Lifeline discount in connection with a Verizon

package, you should reapply for Lifeline in 2007.

Instructions for Lifeline Telephone Service Credit

YOU MUST REAPPLY FOR LIFELINE EACH YEAR.

42

43

EDUCATION PROPERTY TAX ADJUSTMENT CALCULATION(Adjustments phase out at approximately $106,000 household income)

A. Housesite Education Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A. ______________________If Household Income (Form HS-122, Line 13) is less than $90,000, enter total of amounts from

Form HS-122, Lines 9 and 16.If Household Income (Form HS-122, Line 13) is $90,000 or more, enter lesser of the total of

amounts from Form HS-122, Lines 9 and16 OR $200,000 value (200K) above.

B. Adjustment of Housesite Education Tax for Ownership (Multiply Line A by Form HS-122, Line 12) . . . . . . B. ______________________

C. Income-sensitized Housesite Education Tax (Multiply Form HS-122, Line 13 by HIP above) . . . . . . . . . . . . . C. ______________________

D. Housesite Education Tax Adjustment (Subtract Line C from Line B). If Line C is more than Line B, enter “0”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D. ______________________

E. Acreage Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E. ______________________If Household Income (Form HS-122, Line 13) is $90,000 or more, enter zero.If Line D is more than zero AND Household Income is less than $90,000, multiply up to 5 additional

acres not included in housesite by $10.

F. Education Property Tax Adjustment amount (Add Lines D and E, but not more than $10,000). . . . . . . . . . . F. ______________________

ADDITIONAL ADJUSTMENT FOR CLAIMANTS WITH HOUSEHOLD INCOME OF $47,000 OR LESS

G. Value Method and Ownership Adjustment (Multiply HEV above by Form HS-122, Line 12) . . . . . . . . . . . . . G. ______________________

H. Subtract Line G from Line B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H. ______________________

I. Housesite Education Tax Adjustment (Subtract the lesser of Line C or H from Line B) . . . . . . . . . . . . . . . . . . I. ______________________

J. Education and Municipal Housesite Tax (Add Form HS-122, Lines 9, 10, 15, and 16) . . . . . . . . . . . . . . . . . . J. ______________________

K. Ownership adjustment (Multiply Line J by Form HS-122, Line 12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . K. ______________________

L. Plus property tax allocable from mobile home lot rent (Add amounts from Line K and Form HS-122, Line 14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L. ______________________

M. Maximum property tax for income (Multiply Form HS-122, Line 13 by percentage from chart below that corresponds to your income level) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M. ______________________

N. Property Tax Exceeding Household Income Percentage (Subtract Line M from Line L) . . . . . . . . . . . . . . . . . N. ______________________

O. Enter the larger of Line I or Line N. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O. ______________________

P. Acreage Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. ______________________If Line N is more than zero, multiply up to 5 additional acres not included in housesite by $10.

R. Property Tax Adjustment to be credited towards your 2007/2008 property tax bill. Add Lines O and P, but not more than $10,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R. ______________________

If Household Income is: $0 – 9,999 $10,000 – 24,999 $25,000 – 47,000

Use this %: 2.0% 4.5% 5.0%

HIP (from chart on page 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .HIP. ______________________

HEV (from chart on page 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .HEV. ______________________

200K Homestead School Tax (from chart on page 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200K. ______________________

YOU MAY USE THIS WORKSHEET TO ESTIMATE YOUR PROPERTY TAX ADJUSTMENT. PLEASE NOTE THAT IF YOU DESIGNATE ANY OF YOUR INCOME TAX REFUND TO PAY YOUR

PROPERTY TAX, OR IF YOU OWE A DEBT TO THE STATE OR FEDERAL GOVERNMENT, THE ADJUSTMENT AMOUNT SENT TO YOUR TOWN WILL DIFFER FROM THE AMOUNT

CALCULATED ON THIS FORM. THE DEPARTMENT WILL NOTIFY YOU AFTER JUNE 30TH OF THE ADJUSTMENT AMOUNT SENT TO THE TOWN.

UNLESS OTHERWISE SPECIFIED, LINE REFERENCES ARE TO THIS WORKSHEET.

PROPERTY TAX ADJUSTMENT WORKSHEET

For Line 15A - Use amounts from Lines 14 and 21 of FederalForm 1040. Nonresidents also use this line to adjust for non-VTstate and local obligations.

Examples of other income: gambling winnings including lotteries, rafflesor lump-sum payment from sale of right to receive future lottery annuity;jury duty fees; reimbursement this year for items itemized last year suchas medical expenses, interest; income from rental of personal property;taxable distributions from Coverdell ESA or Qualified Tuition Plan, medicalsavings account or Archer MSA.

Lines 1 - 15, Column B Enter the VT portion of your Federal adjustedgross income that is included in adjusted gross income on your Federalincome tax return. See page 5 for definition of VT income.

NOTE: For Line 3B - Use the amount of ordinary dividends receivedwhile a VT resident.

For Line 15B - Use the amount of other income received while aVT resident.

Line 17, Column A Enter the Federal adjustment for IRA deduction fromForm 1040, Line 32 or 1040A, Line 17 and Keogh, SEP, or SIMPLEdeduction from Form 1040 Line 28.

Line 17, Column B Enter the VT portion. This is determined by using thepercentage of VT earned income to the amount of earned income reportedon the Federal return. Example: Charles moves to VT in July. His totalFederal wages are $20,000. Charles is a VT resident for six months. Heearned $10,000 in VT. The VT portion is 50% as he earned 50% of hisincome in VT. Charles has an IRA deduction of $1,000. The amount toenter in this column is 50% of $1,000 or $500. For a joint return, use thesame allocation method, but do a separate calculation for each spouse.

Line 18, Column A Enter the amount for Student Loan Interest enteredon Form 1040, Line 33 or Form 1040A, Line 18.

Line 18, Column B Enter the portion of the Student Loan Interest paidwhile a VT resident.

Employee Deductions

Line 19, Column A Enter the amount of expenses for reservists,performing artists or fee-basis government officials from 1040, Line 24,and jury duty pay you gave to your employer from Form 1040, Line 34 or1040A, Line 19.

Line 19, Column B Enter the portion of the Employee Deductions paid orincurred while a VT resident.

Self-Employment Deductions

Line 20, Column A Enter the combined amounts of self-employment taxfrom 1040, Line 27, self-employed health insurance from 1040, Line 29.

Line 20, Column B Enter the VT portion of these self-employmentdeductions. Entries are based on where tax or insurance was imposed.

Line 21, Column A Enter the amounts for Health Savings Account from1040, Line 25, and Archer Medical Savings Account from Form 1040,Line 23.

Line 21, Column B Enter the VT portion paid while a VT resident.

Line 22, Column A Enter the amount for moving expenses from 1040,Line 26.

Line 22, Column B The VT portion for moving expenses are expensesincurred for a move into VT.

Line 23, Column A Enter the amount for penalty on early withdrawal ofsavings from 1040, Line 30 or 1040A, Line 16.

Line 23, Column B The VT portion of penalty on early withdrawal ofsavings is the penalty imposed during VT residency.

Line 24, Column A Enter the amount for Alimony from 1040, Line 31a.

Line 24, Column B The VT portion is the alimony paid during VTresidency.

Line 25, Column A Enter the amount for Domestic Production Activitiesfrom 1040, Line 35.

Line 25, Column B If you used the Domestic Production Activitiesdeduction, go to www.state.vt.us/tax or contact the Department forinstructions on calculating the VT portion.

Dates of VT Residency in 2006 Enter the dates you lived in VT in 2006.

Name of State(s) During Non-VT Residency Write the names of theother states, Canadian provinces, or countries where you were a residentin 2006.

SCHEDULE II Adjustment for VT Exempt Income

Line 30 If Schedule I completed, enter Line 27 amount. Otherwise, enterAdjusted Gross Income from VT Form IN-111, Section 2, Line 10.

Line 31 Part-Year Residents and Nonresidents: Enter the amount fromSchedule I, Line 29. Full-Year Residents: Enter 0.

Line 32 Enter the amount of VT exempt military pay received in 2006that is included in your Federal adjusted gross income. Exempt militarypay is:

I. Wages earned from the armed services for full-time activeduty outside of VT. Supporting Documents Required: Copy ofactive duty orders.

II. Up to $2,000 for National Guard or U.S. Reserve trainingpay earned in VT if your adjusted gross income for tax year 2006 isless than $50,000. Supporting Documents Required: Copy ofDFAS form for months ending September 30, 2006, and December31, 2006, or certification statement from unit that all training wascompleted during the calendar year.

III. Student loan repayment can be taken only if the amount isincluded in your adjusted gross income. Enter the repayment benefitmade under 10 U.S.C. Chapters 109 and 1609 for 2006 year.Supporting Documents Required: Certification statement fromarmed services showing your name, address, social security number,amount of student loan repayment, and payment date.

$ Deployed members of the National Guard or U.S. Reserve may be eligiblefor both full-time military pay as well as the monthly training exemptions.

$ Persons assigned by their employer to work on a military project are notmembers of the armed services.

Line 33 Federal Employment Opportunity Enter the amount of wages orexpenses required to be added back to Federal AGI under IRC Sections 280Cor 44.

Line 34 Enter the amount you received in 2006 for Regular RailroadRetirement Benefits (Tier 1) and Supplemental Railroad Annuity Payments(Tier 2). This income is taxable at the Federal level, but exempt from VTincome tax. If you receive social security that includes Tier 1 or Tier 2benefits, enter only the portion included in your Federal adjusted grossincome. Supporting Documents Required: Copy of 1099, 1099RB, WP-4 or any other document you received showing payment of these benefits.

Line 35 Enter the amount paid by the State of VT to a family for thesupport of an eligible person with a developmental disability, as defined in18 V.S.A. §8722(2). This is not difficulty of care payments. This exclusiondoes not apply to caretakers or contractors hired by the family or guardianof the person with a developmental disability, even if the payment comesdirectly from the State. $ This amount may be excluded only if thepayment is included in your adjusted gross income.

Line 36 Enter the amount or the portion eligible for VT business expensesmade to comply with the Americans with Disabilities Act under Internal

44

Continued from page 10

Revenue Code §44. Supporting Documents Required: Copy of Federalform.

Line 37 (For Nonresidents Only) Enter the amount of VT income earned fora dramatic performance in a commercial film production that is excludedfrom income tax in your state of legal residence.

Line 38 Add Lines 31 through 37and enter result. This is the total amountof income not subject to VT income tax. $ No entry is needed on this lineif you did not have entries on Lines 31 - 37.

Line 39 Subtract Line 38 from Line 30. This is the VT income subject to tax.

Line 40 Divide Line 39 by Line 30. Enter result and also on Form IN-111,Section 4, Line 21.

$ Carry out to two decimal places.

Example: (Line 39) $ 4,000 = .2222 x 100 = 22.22%(Line 30) $18,000

NOTE: If Line 39 (VT income) equals or exceeds Line 30 (adjusted grossincome), enter 100.00% and also on Form IN-111, Section 4, Line 21.

If Line 30, 31, 38, or 39 is negative, go to the Department web site atwww.state.vt.us/tax or call (866) 828-2865 (toll-free in VT) or (802)828-2865 for instructions.

FORM IN-119 VT TAX CREDITS

This form allows you to compute all non-refundable tax credits. A non-refundable tax credit means that the credit can only be taken against atax liability and cannot exceed the tax due.

Credits claimed on Lines 7 - 13 require prior approval from VTDivision for Historical Preservation.

Credits claimed on Lines 15 - 22 require prior approval from VTEconomic Progress Council (VEPC)

Line 1 VT Higher Education Investment Plan (VHEIP)

Supporting Document Required: Statement or certificate from VTStudent Assistance Corporation or administrator of the investment plan.

You may be eligible for a tax credit on contributions made during calendaryear 2006 to the VT Student Assistance Corporation higher educationinvestment plan. The tax credit equals 5% of the first $2,000 ofcontributions per beneficiary. For jointly filed returns, each spouse cancontribute to a beneficiary's account and each spouse may claim thecredit for his or her contributions. Contributions made by another personthat is not listed as the account owner (except spouses filing jointly) arenot eligible for the credit.

Example: Canute and Olga, husband and wife, file a jointincome tax return. Canute opens a VHEIP account for Junior, agrandchild, with a $2,000 contribution in 2006. Canute alsoopens a VHEIP account for Sissy, a grandchild, with a $1,000 in2006. Olga contributes $1,000 to Junior's account andcontributes $3,000 to Sissy's account. Canute's contributionsprovide a tax credit is $150 (5% of $2,000 + 5% of $1,000).Olga's tax credit is $150 (5% of $1,000 + 5% of $2,000 max).The tax credit available to the joint return is $300. Thecontributions may come from the spouse's joint bank account ortheir individual accounts.

Example: Ollie and Lena, husband and wife, file marriedseparately income tax returns. Ollie opens a VHEIP account forOlaf, his son, with a $2,000 contribution in 2006. Ollie alsoopens a VHEIP account for Freida, his daughter, with a $1,000in 2006. Lena contributes $1,000 to Olaf's account and $3,000to Freida's account. Ollie's tax credit is $150 (5% of $2,000 +

5% of $1,000). Since Lena is not a named account holder, shecannot claim a credit.

Example: Briget opens an account for Arkin, her son. Shecontributes $2,000 to the account in 2006. Uncle Jim alsomakes a $1,000 contribution to Arkin's account. Briget'scontribution provides a $100 tax credit for her. Since Uncle Jimis not the owner of the account, he cannot claim a credit. IfUncle Jim opened an account for his nephew, he could claim thetax credit for the contribution.

For more information on the VT Higher Education Investment plan, go tothe VSAC website at www.vsac.org or call 1-800-637-5860 Mondaythrough Friday, 8 a.m. to 8 p.m.

Line 2 Angel Venture Capital Credit A taxpayer may earn a tax creditby investing a capital gain in an eligible venture capital business. The taxcredit is equal to 3% of the capital gain income invested. For moreinformation, go to Tax Credits topic on our web site atwww.state.vt.us/tax in the Individual section.

For taxpayers who receive the tax credit through S corporations,LLCs, LLPs, or partnerships, enter the name of the entity and itsFEIN at the top of Form IN-119.

TAX CREDITS FROM MORE THAN ONE ENTITY? For the EconomicAdvancement Tax Incentive credits, you must complete a separate FormIN-119 for each entity from which you have received a K-1. Fill out theidentifying information at the top of the form and complete lines 15-23and 40-45 of the worksheet for each entity receiving an EATI credit.

For Line 41b - Residents - use adjusted gross income from Form IN-111,Line 10. Nonresidents - use Form IN-113, Line 39 amount. Divide theSchedule K-1 income by the VT income to calculate the ratio of K-1 income.

To arrive at the credit for entry on Form IN-111, Section 5, Line 24, addtogether the amount on Line 45 for all entities and complete lines 46 & 47.

See tax credit information at www.state.vt.us/tax showing requirements,supporting documents and contact information.

Credits claimed on Lines 7 - 13 require prior approval from VTDivision for Historical Preservation.

Credits claimed on Lines 15 - 22 require prior approval from VTEconomic Progress Council (VEPC)

SCHOOL PROPERTY TAX RATES AND

PROPERTY TAX ADJUSTMENT(FOR FULL-YEAR VT RESIDENTS ONLY)

The State of Vermont funds public education through a statewideproperty tax that assesses separate school property tax rates onproperties declared as a homestead and properties undeclared or withnonresidential use. Vermont limits the property taxes of owners ofhomesteads through the property tax adjustment. Homeowners meetingthe eligibility requirements pay a percentage of their household incomefor property taxes.

GENERAL INFORMATION

School Property Tax Rates Vermont towns classify property on theirgrand lists as either homestead or nonresidential with a separate schoolproperty tax rate for each. Homestead property is owned and occupiedby a Vermont resident as his or her principal home, and declared as ahomestead with the Vermont Department of Taxes. Nonresidential is:(1) property used for commercial purposes, or as a camp, second home orsummer cottage, (2) property not declared as a homestead, or (3)property not used as a homestead on April 1. Only properties declared as

45

a homestead on Form HS-122 and filed by September 4, 2007 are taxedat the homestead school property tax rate.

All Vermont resident homeowners who own and occupy property as theirprincipal home on April 1, 2007 must declare the property as ahomestead each year by f i l ing Form HS-122 with the VermontDepartment of Taxes.

Property Tax Adjustment The property tax adjustment assures that aVermont resident will not pay more than the established percentage oftheir household income for property taxes. The State will pay theproperty tax adjustment directly to the town and the town will issue thehomeowner a property tax bill for the balance due. The property taxadjustment calculation uses 2006 household income and 2006 propertytaxes.

WHO NEEDS TO FILE HS-122 (1) All homeowners who own andoccupy a VT property as their principal residence on April 1, 2007 mustfile Form HS-122 to declare the property as a homestead. The declarationportion of HS-122 must be filed even if a homeowner does not claim, or isnot eligible to claim, a property tax adjustment. Individuals holding a lifeestate or living in the home they transferred to a revocable trust alsoneed to file. (2) Vermont resident homeowners with household incomesup to $106,000 may file a claim for property tax adjustment on Form HS-122 if they were Vermont residents all of 2006 and declared the propertyas a homestead by the due date.

DECLARATION OF VERMONT HOMESTEAD SECTION OF HS-122Declaring the property as a homestead means the homestead schoolproperty tax rate applies. Property tax adjustment will be paid only forproperties declared as homestead property.

PROPERTY TAX ADJUSTMENT CLAIM SECTION OF HS-122 First,complete Form HI-144, Household Income, to determine your eligibility forproperty tax adjustment. If you do not exceed the household income limit,also complete the claim section of HS-122. The property tax adjustmentgoes directly to the municipality as a credit towards your 2007/2008property tax bill. The municipality will issue you a property tax bill for thebalance due. The maximum property tax adjustment allowed is $10,000.You will receive notification of the amount sent to the municipality. Youcan use the worksheet on our website www.state.vt.us/tax or on page43 of the income tax booklet to calculate the property tax adjustmentamount.

TIMELY FILING Form HS-122 is due April 17, 2007. No extension of timeis available. A return mailed through the US Post Office will be consideredtimely if it is received by the Department within 3 business days of the duedate. If you file electronically or bring the return to the Department inperson, the Department must receive the return on or before the due dateto be timely.

Form HS-122 filed on or before April 17, 2007

• The property will be classified as a homestead on the town grand

list

• The property will be taxed at homestead school property tax rate

• For eligible homeowners, the property tax adjustment will be sent

to town on July 1, 2007

• The homeowner will receive a property tax bill for the balance due

LATE FILING An HS-122 filed after April 17, 2007 is late.Form HS-122 filed between April 17, 2007 and September 4, 2007

• The property will be classified as a homestead on the town grand

list

• The property will be taxed at homestead school property tax rate

• Late filing penalties will be charged

• For eligible homeowners, the property tax adjustment will be sent

to town on September 15, 2007

• Depending on when the town sends property tax bills, the

homeowner may receive a property tax bill without adjustment and

a second property tax bill after September 15

Form HS-122 filed after September4, 2007

• The property will remain

classified as nonresidential

on the town grand list

• The property will be taxed at

the higher school property tax rate

• No property tax adjustment claim may be made

• Late filing penalties will be charged

Late Filing PenaltiesForm HS-122 filed between April 17, 2007 and September 4, 2007

• 1% of the correct school property tax will be billed and collected by

the town

• A $15 reduction in the property tax adjustment amount

Filing Form HS-122 after September 4, 2007

• 1% of the correct school property tax will be billed and collected by

the town

The late filing penalty may be appealed to the town for hardship.Hardship is defined as full-time active military duty outside of VT; seriousillness or disability of the homestead owner; or serious illness, disabilityor death of an immediate family member of the homestead owner.

REQUESTS FOR ADDITIONAL INFORMATIONYou may be asked to supply additional information on your Form HS-122.Such a request does not necessarily mean that you filed improperly.These requests are a routine part of processing returns.

MISSING INFORMATION OR INCOMPLETE FILINGReturns with incomplete or missing information are not considered filed.You will be given an opportunity to complete the return. The informationmust be provided by September 4, 2007 or our request date, whichever islater. Information received after that time cannot be accepted and thereturn will be considered unfiled. Your home may be taxed at thenonresidential rate and no property tax adjustment will be available.

AMENDING or CHANGING PROPERTY TAX PROGRAM RETURNSCorrecting household income reported on Form HI-144 attached to atimely filed property tax program return is the only change allowed afterthe due date. The change must made be within three years of the filingdue date. A timely filed HS-122 means it was filed on or before April 17.

Use the applicable tax year Form HI-144 and complete with the correctincome. Mark "AMENDED" on the HI-144 and send to the Department.

Corrections to the 2007 property tax adjustment claim may be made up toSeptember 4, 2007.

DEFINITIONS FOR PROPERTY TAX ADJUSTMENT CLAIM

Allocable Mobile Home Lot Rent means rent for a lot in a for-profitmobile home park as calculated on Form LC-142, Landlord Certificate.

Allowable Property Tax means the property tax on the portion of thehousesite you own and occupy as a home. If the housesite is jointlyowned, see Ownership Situations.

Claimant means a person who owns and occupies the housesite as hisor her principal dwelling and meets the eligibility requirements for aproperty tax adjustment. Only one claimant per household is allowed.There can be joint claimants if both claimants own and occupy thehousesite as his or her principal dwelling. See definition of JointClaimants.

46

FORM HS-122 - The Declaration of Vermont Homestead andProperty Tax Adjustment Claim are now combined in one form.

NOTE: All VT resident

homeowners must file the

Declaration of Vermont

Homestead even if late.

!

Cooperative means a housing corporation organized under 11 V.S.A.Chapter 14.

Domiciled means, for purposes of declaring a VT homestead, that VT isyour home state, and you own and occupy the property as your principalresidence on April 1, 2007. For purposes of a property tax adjustmentclaim, the homeowner must also have been domiciled in VT all of 2006.For factors considered when determining domicile, see VT Department ofTaxes Regulation 1.5811.

Education Tax Allocated from Land Trust, Co-Op or Nonprofit MobileHome Park means the education property tax on the portion of landowned by one of these entities that is part of your housesite.

Homestead means your principal dwelling and improvements and allcontiguous land. (NOTE: A separate parcel contiguous to yourhomestead requires a separate declaration for each parcel.)

Household and Household Income See page 49.

Housesite means the portion of the homestead that is the principaldwelling owned and occupied by the Claimant as his/her primary homeplus improvements and up to two acres of land.

Joint Claimants means claimants who jointly own and occupy thehomestead as their principal dwelling.

Land Trust means a nonprofit corporation or community land trustexempt under Section 501(c)(3) of the Internal Revenue Code. Thecorporation's purpose must be the creation or retention of affordablehousing for lower income Vermonters and its bylaws must require thatsuch housing be maintained as affordable housing for lower incomeVermonters on a perpetual basis.

Legal Separation means an order that discusses the financialobligations and disposition of assets of the parties that is issued by acourt that may grant an absolute divorce or civil union dissolution. Apreliminary order in a divorce case or civil union dissolution may also beaccepted as evidence of legal separation

Municipal Tax Allocated from Land Trust, Co-Op or Nonprofit MobileHome Park means the municipal property tax on the portion of landowned by one of these entities that is used as part of your housesite.

Nonprofit Mobile Home Park means a corporation exempt underSection 501(c)(3) of the Internal Revenue Code, or its wholly ownedsubsidiary which has as its purpose the preservation of housing for lowincome families; or a housing cooperative organized under 11 V.S.A.Chapter 14.

Nonresidential Property means all property not properly declared as ahomestead, and property used for commercial, rental, business, orvacation purposes such as a camp or second home.

Spouse means the husband, wife, or civil union partner of the Claimant.

SPECIAL SITUATIONS

Deceased Homeowner An estate may file a Declaration of Vermonthomestead on behalf of a deceased homeowner if the property was thedecedent's homestead at the time of death, and from the date of deaththrough the next April 1 the property is held by the estate of the decedentand not rented.

An estate cannot file for the property tax adjustment on behalf of adeceased Claimant. The right to a property tax adjustment credit does notsurvive the Claimant. If a Claimant dies prior to April 1 after filing atimely claim for property tax adjustment, the estate must notify theDepartment to withdraw the claim and repay any adjustment issued. If aClaimant dies on or after April 1 after filing a timely claim for property taxadjustment, the commissioner may pay the adjustment to the town onbehalf of another member of the household with ownership interest.

A surviving spouse or civil union partner who owns and lives in thehomestead and meets the eligibility requirements can become the

Claimant. Please call the Department or go to the web site for moreinformation.

Delinquent Property Tax You may apply for property tax adjustmenteven if you have unpaid property taxes. The 2007 property taxadjustment applies first to the current year property tax. The municipalitymay use any remaining adjustment towards penalties, interest, or prioryear property taxes.

Homestead and Nonresidential Property Use A property may beclassified as both homestead and nonresidential. When a portion of theproperty is a homestead and a portion is used for business purposes orrented out, the following rules apply:

Business Use: If 25% or less of the dwelling is used for businesspurposes, the entire property will be taxed at the homestead schoolproperty tax rate. Enter 00.00% for business use in the Declaration ofVermont Homestead portion of HS-122. If more than 25% of the dwellingis used for business purposes, your property tax bill will show both ahomestead and nonresidential school property tax rate. Generally, thebusiness use percentage is the same as reported on your Federal incometax return. Enter the percentage on the Declaration of VermontHomestead portion of HS-122. Examples for calculating nonresidentialuse are: (a) 1,800 square foot dwelling with 635 square feet used as ahome office and inventory storage. 35.28% is business use (635/1,800).Enter 35 to round to whole percentage. This part is taxed at thenonresidential rate. (b) 1,200 square foot dwelling with 250 square feetused as a home office. 20.83% business use (250/1,200) rounded to21%. Because this is less than 25%, enter 00.

Rental Use: The portion of your dwelling that you rent to another personis nonresidential and is taxed at the nonresidential tax rate. All rental usemust be reported and the 25% allowance does not apply to rentals. Yourproperty tax bill will show both a homestead and nonresidential schoolproperty tax rate. The rental use percentage is generally the same asreported on your Federal income tax return. Enter the percentage on theDeclaration of Vermont Homestead portion of HS-122. Examples forcalculating nonresidential rental use are: 1,800 square foot dwelling with365 square feet rented. You have 20.27% rental use (365/1,800). Enter20 to round to whole percentage. Eighty percent of your dwelling will betaxed at the homestead rate and twenty percent at the nonresidentialrate.

Nursing Home or Residential Care for Other Owner If the claimant isage 62 or older and the other owner of the housesite is the claimant'ssibling or spouse who has moved indefinitely from the housesite to anursing home or a residential care facility, the claimant treats his or herclaim as if he or she is the only owner, provided the sibling or spouse doesnot make a claim for the same housesite or does not file for a renterrebate.

Renting at the End of the Year If you owned a VT homestead in 2006,sold the homestead before April 1, 2006, and rented on December 31,2006, you may be eligible for a renter rebate for rent paid in 2006.NOTE: This is the only situation where a renter rebate can be for lessthan 12 months.

OWNERSHIP SITUATIONS

Age 62 or Older in 2006 If the Claimant shares ownership of thehousesite with his or her descendant(s), the full housesite value andproperty tax are claimed, even if the other owners (descendants) are notmembers of the household. A letter of explanation may be requested.

Divorced or Legally Separated Joint Owners If you are divorced orlegally separated from your spouse, the name of your former spouse orspouse from whom you are separated remains on the deed, and you areawarded possession of the home, you can claim the percentage of thehousesite property tax for which you are responsible under the finaldivorce decree or court order. If the divorce decree or court order does notspecify responsibility for the property taxes, the person residing in the

47

home declares the property as his or her homestead and is allowed 50%ownership of the housesite. The person not living in the home cannotmake a property tax adjustment claim. Examples: (1) Dan and Lynn aredivorced/legally separated but both names stay on the deed. Lynn isgiven possession of the home and 100% responsibility for the propertytaxes. Lynn declares the property as her homestead and the property istaxed at the homestead school property tax rate. She uses the housesitevalue and housesite property taxes from the property tax bill and enters100% ownership interest on Form HS-122, Line 12. (2) Ethan and Myrnaare divorced/legally separated but both names stay on the deed. Myrnahas possession of the home and Ethan has 100% responsibility for theproperty taxes. Myrna declares the property as her homestead and theproperty is taxed at the homestead school property tax rate. She cannotclaim property tax adjustment as she is not responsible for the propertytaxes. Ethan cannot claim property tax adjustment as he does not live inthe home. (3) James and Elizabeth are divorced/legally separated butboth names stay on the deed. Elizabeth lives in the home, but the divorcedecree/court order does not say who is responsible for the propertytaxes. Elizabeth declares the property as her homestead and the propertyis taxed at the homestead school property tax rate. She uses thehousesite value and housesite property taxes from the property tax billand enters 50% ownership interest on Form HS-122, Line 12. Jamescannot claim property tax adjustment as he does not live in the home.These rules also apply to ex-Civil Union partners upon dissolution.

You may be asked for a copy of the portions of the court documentshowing the court, date filed, signature page, and the housesite-relatedprovisions.

Duplex Housing BOTH OWNERS OCCUPY THE BUILDING AS THEIRPRINCIPAL DWELLING, the eligible housesite property tax is the tax on theportion owned by each Claimant. If the town issues a property tax bill toeach Claimant for only his or her portion of the housesite, use thehousesite value and property tax information on the bill. If the propertytax bill is for the total property, the Claimant uses the housesite value andproperty taxes pro rated for his or her ownership interest. Examples: (1)Jack and Jill own a duplex and each occupy half as their principaldwelling. The town sends them each a property tax bill for theirrespective units. Jack and Jill each declare the property as theirhomestead and the property is taxed at the homestead school propertytax rate. They use the housesite value and housesite property taxes fromtheir property tax bill and enter 100% ownership on Form HS-122, Line12. (2) Sally and Sara own a duplex home and each occupies their half astheir principal dwelling. The town sends one property tax bill. EitherSally or Sara declares the property as a homestead and the property istaxed at the homestead school property tax rate. They use half of thehousesite value and housesite property tax and enter 100% ownershipinterest on Form HS-122, Line 12.

ONE OWNER DOES NOT OCCUPY HIS OR HER PART OF THE BUILDING ASHIS OR HER PRINCIPAL DWELLING, the owner occupying the building ashis or her principal dwelling pro rates his or her ownership interest by theother owner's interest. Examples: (1) Tom and Jerry own a duplex. Tomlives in the duplex but Jerry moved out and now rents his portion. Thetown issues a property tax bill to each owner. Tom declares the propertyas his homestead and his portion of the property is taxed at thehomestead school property tax rate. Since Jerry holds a half ownershipinterest in Tom's property, Tom uses the housesite value and housesiteproperty tax from his property tax bill and enters 50% ownership on FormHS-122, Line 12. (2) Jane and her brother Dick own a duplex. Dickoccupies his portion of the property as his principal dwelling. Jane rentsher side of the duplex to others. The town issues one property tax bill forthe property. Dick declares his portion of the property as a homesteadand enters 50% rental use on HS-122, Line 5. He uses the housesite valueand housesite property tax from the property bill and enters 50%ownership interest to adjust for Jane's 50% ownership in his property.

Life Estate A person occupying the property as his or her principalresidence through a life estate is the person who declares the property asthe homestead. Check Line 7b of Form HS-122. The life estate must begranted through a legal document. The legal document does not have tobe attached to the HS-122 form but must be available for review uponDepartment request.

Shared Ownership of the Housesite When a housesite is owned bysomeone other than the Claimant and member(s) of the household, theeligible property tax or housesite value is the percentage owned by thehousehold members. Examples: (1) James, Grace and Lucinda jointlyown a home and all live in the home. Lucinda is the Claimant. Shedeclares the property as a homestead. She uses the housesite value andhousesite property tax from the property tax bill and enters 100%ownership interest on Form HS-122, Line 12 as all owners live in thehome; (2) Tim and Dan own a home. Tim lives in the home. Dan doesnot. Tim is the Claimant. He declares the property as his homestead andit is taxed at the homestead school property tax rate. He uses thehousesite value and housesite property tax from the property tax bill andenters 50% ownership interest on Form HS-122, Line 12 to adjust forownership interest of Dan who does not live in the household.

Trust Ownership A dwelling owned by a trust is not a homestead unlessit is the principal residence of the grantor and sole beneficiary of the trust,and the trust is revocable or become irrevocable solely by reason of thegrantor's death. The term "sole beneficiary" is satisfied if a husband andwife or civil union partners together are the only beneficiaries of the trust.Check Box 7a of Form HS-122 if trust ownership meets this definition.The trust document does not have to be attached to the HS-122 form butmust be available for review upon Department request.

BUYING AND SELLING PROPERTY

$ Buying after April 1, 2006 If the property is declared as a homesteadas of April 1, 2006, use the property tax bill issued to the previous owner.

If the property is not declared as a homestead as of April 1, 2006 but youwill declare it as your homestead on April 1, 2007, request the town clerkto provide the housesite value and property taxes information for theproperty as if it were a homestead on April 1, 2006.

$ Buying before April 1, 2007 If you buy the property that you will useas your principal residence, you must declare the property as a homesteadfor the 2007 calendar year.

$ Selling the Property Before April 1, 2007 If you file Form HS-122, butsell the property on or before April 1, 2007, you must withdraw the claim.Use Form HS-122W available at www.state.vt.us/tax or by calling(802) 828-2515.

$ Selling the Property After April 1, 2007 If you file HS-122, but sellthe property after April 1, 2007, the property tax adjustment remains on theproperty tax bill. The property tax adjustment may be allocated at theclosing of the property transaction.

NEW CONSTRUCTION

$ 2006 New Construction If the dwelling you declare as your homesteadon April 1, 2007 was newly constructed in 2006, use the 2006 propertytaxes on up to 2 acres of the parcel and any portion of the dwelling that wasbuilt on April 1, 2006.

48

FORM HI-144 HOUSEHOLD INCOME

Complete this form first to determine if your household income meets theincome requirements for 2007 Property Tax Adjustment (Form HS-122) or2006 Renter Rebate Claim (Form PR-141).

Definitions

Cash Equivalents means stocks, bonds, treasury obligations, certificatesof deposits or other instrument convertible to cash.

Claimant means the person who makes a property tax adjustment claimor a renter rebate claim. For property tax adjustment, the Claimant is aneligible owner of the property and declared the property as his or herhomestead. For renter rebate, the Claimant is the eligible personresponsible for paying the rent or the leaseholder. Only one claim forproperty tax adjustment or renter rebate can be made per household, butthere may be joint Claimants.

Household means the Claimant, Spouse or CU Partner, and Other Personswho lived in the home at any time during calendar year 2006.

Household Income means the Federal Adjusted Gross Income withadditions or subtractions of certain taxable and nontaxable income for you,your spouse or CU partner, and all Other Persons for the time they lived withyou during calendar year 2006. Example: If a roommate resides fromSeptember to December 2006, you include the income he or she receivedduring those months.

ADDITIONS: Before the deduction of any trade or business loss, lossfrom a partnership, loss from a small business or "subchapter S"corporation, loss from a rental property, or capital loss: (1) alimonyreceived, (2) support money other than gifts, (3) gifts of cash or cashequivalents received by a member of the household, with the first$6,500.00 excluded, (4) cash public assistance and relief; (5) cost ofliving allowances paid to federal employees; (6) allowances received bydependents of servicemen and women; (7) portion of Roth IRA distributionsrepresenting investment earnings and not included in adjusted grossincome; (8) railroad retirement benefits; (9) payments received under thefederal Social Security Act; (10) all benefits under Veterans' Acts; (11)federal pension and annuity benefits not included in adjusted gross income;(12) nontaxable interest received from the state or federal government orany of its instrumentalities; (13) workers' compensation; (14) gross amountof "loss of time" insurance; (15) amount of capital gains excluded fromadjusted gross income; and (16) income of a spouse from whom you are notlegally separated even if that spouse does not live in the household.

$ For capital gain and loss, see instructions for Line i.

$ Contact the Department or go to the website for information on whenthe income of a grantor to a trust may need to be included.

EXCLUSIONS: (1) Property tax adjustment or renter rebate from theState of Vermont; (2) first $6,500 of income earned by a full-time studentwho qualifies as your dependent; (3) first $6,500 of income received by aparent who qualifies as your dependent; (4) first $6,500 of income receivedby a disabled child who qualifies as your dependent; (5) payment made bythe State of VT for foster care pursuant to Chapters 49 and 55 of Title 33;(6) payment made by State of VT to a individual for support of adevelopmentally disabled an eligible person defined under subdivision8722(2) of Title 18 (includes difficulty of care); (7) gifts fromnongovernmental sources; (8) surplus food or other relief in kind suppliedby a government agency; (9) the contribution portion of a pension orannuity distribution if the contribution was included in adjusted grossincome in the year of contribution; (10) the income of a person living in thehousehold under a written homesharing agreement; (11) income of a personliving in the household who is a bona fide employee hired to providepersonal care to a household member and is not related to the person towhom the care is provided; (12) income of a spouse age 62 or older onDecember 31, 2006 who does not live in the household and has movedpermanently to a nursing home or other care facility; and (13) income of a

person residing with the homeowner who is age 62 or is disabled for theprimary purpose of providing attendant care services or homemakerservices or companionship services that allow the homeowner to remain inhis or her home or to avoid institutionalization.

ADJUSTMENTS: You may subtract from household income (1) SocialSecurity and Medicaid taxes withheld, and self-employment taxes paid bythe individual; (2) child support money paid if substantiated by receipts orother evidence that the commissioner may require; and (3) adjustments toFederal Adjusted Gross Income from 1040 Line 36 or 1040A Line 20.

Household Living Expenses are costs associated with maintaining thehousehold such as mortgage, rent, food, utilities, etc.

Other Persons means children, relatives, friends, housemates, domesticpartners, or any other persons who lived with you at any time duringcalendar year 2006.

Support Money means cash, payment of housing expenses for theClaimant, or other financial assistance that provides the means for theClaimant to live in the homestead or rental unit.

INSTRUCTIONS

Claimant Information This is a REQUIRED entry.

Write your name and your spouse's or civil union partner's name (ifapplicable) and social security number(s) in the entry boxes provided.

Write the name(s) and social security number(s) of all Other Persons whohad income and lived in the household in calendar year 2006. Attachadditional sheet of paper if needed.

Lines a through m Enter the income in the appropriate column for allmembers of the household in calendar year 2006. This is both taxable andnontaxable income.

Line n Add Lines a through m for each column and enter the results in theappropriate column entry boxes.

Special Notes

Line g Report alimony and child support payments as well as any othersupport money received and used for personal living expenses.

Line h Enter the amount of income you had from a business. $ If you havea loss, enter 0. You can net a business loss against a capital gain if itoccurred in the same tax year and for the same business.

Line i A business may be eligible to net a loss against a capital gain on thesale of business property if (1) the Internal Revenue Code would require theincome to be reported if the sale had been a capital gain; (2) the loss andcapital gain were both realized in 2006 tax year; and (3) the loss and gainare for the same business. When netting a loss creates negative capitalgain, enter 0. $ Capital gains excluded from adjusted gross income mustbe reported as household income. This includes the capital gain from thesale of your dwelling that is excluded from Federal tax.

Line j Report that portion that is subject to tax from distributions ofretirement and deferred compensation plans and accounts, and fromannuities as household income. This also includes distributions of thetaxable portion of Roth IRA distributions. Nontaxable distributions fromthese sources are not reported as household income. Federal pension andannuity benefits, taxable and nontaxable, are reported as household incomein the year received.

Lines k and l Enter the income from rent on Line k. Enter the income fromfarming or distribution from a pass-through entity on Line l. $ If you havea loss, enter 0. You can net a business loss against a capital gain if itoccurred in the same tax year and for the same business.

Line m Enter on this line other types of household income not specificallylisted. Examples of other income are, but not limited to: prizes and awards,lottery winnings, director's fees, employer allowances, taxable refunds,allowances received by dependents of armed service personnel, military

49

subsistence payments, and any other items of income not specificallyexcluded whether taxable or nontaxable. $ Do not include the renterrebate or any property tax assistance received from State in 2006.

Adjustments

Line o You may deduct social security and Medicare taxes withheld fromthe wages included in household income. See W-2 box for social securitytax withheld and Medicare tax withheld. NOTE: This is for taxes only.Medicare premiums withheld from social security payments are not anallowable adjustment. If you are not required to file a VT income tax return,include copies of your W-2 or 1099 forms.

If self-employed, you may deduct the self-employment tax paid on FederalForm 1040, Line 27 provided the income is included in household income.Include a copy of Federal Schedule SE.

For a full-time student or parent or disabled child that qualifies as yourdependent, the tax adjustment is for the tax on the income over the exempt$6,500 portion.

Line p Child support payments made in 2006 by any member of yourhousehold may be deducted from household income when documentation isprovided. Documentation includes proof of payment (cancelled checks,receipts, statement from Office of Child Support) and the name and socialsecurity number of the parent receiving the payment.

Line q Adjustments from Federal Form 1040, Line 36 or Federal Form1040A, Line 20 are deducted here.

0 25,600 0.00 3.60% 0

25,600 61,850 922.00 7.20% 25,600

61,850 75,000 3,532.00 8.50% 61,850

TAXABLE INCOME UNDER $75,000 USE THE TAX TABLES

If VT Taxable But Not VT Base Plus of the

Income is Over Over Tax is amount over

75,000 94,225 4,649.00 8.50% 75,000

94,225 168,275 6,283.00 9.00% 94,225

168,275 - 12,948.00 9.50% 168,275

Schedule Y-2

Use if your filing status is:

Married Filing Separately; or Civil Union Filing Separately

0 51,200 0.00 3.60% 0

51,200 75,000 1,843.00 7.20% 51,200

TAXABLE INCOME UNDER $75,000 USE THE TAX TABLES

75,000 123,700 3,557.00 7.20% 75,000

123,700 188,450 7,063.00 8.50% 123,700

188,450 336,550 12,567.00 9.00% 188,450

336,550 - 25,896.00 9.50% 336,550

If VT Taxable But Not VT Base Plus of the

Income is Over Over Tax is amount over

50

2006 VT Rate Schedules

Example: VT Taxable Income is $82,000 (Form IN-111, Section 3, Line 15). Filing Status is Married Filing Jointly. Use Schedule Y-1. Base Tax is $3,557.00.Subtract $75,000 from $82,000. Multiply the result ($7,000) by 7.2%. Add this amount ($504.00) to Base Tax ($3,557.00) for VT Tax of $4,061.00. Enter$4,061.00 on Form IN-111, Section 4, Line 16.

0 30,650 0.00 3.60% 0

30,650 74,200 1,103.00 7.20% 30,650

74,200 75,000 4,239.00 8.50% 74,200

TAXABLE INCOME UNDER $75,000 USE THE TAX TABLES

If VT Taxable But Not VT Base Plus of the

Income is Over Over Tax is amount over

75,000 154,800 4,307.00 8.50% 75,000

154,800 336,550 11,090.00 9.00% 154,800

336,550 - 27,448.00 9.50% 336,550

Schedule X

Use if your filing status is:

Single

Schedule Y-1

Use if your filing status is:

Married Filing Jointly; Qualifying Widow(er); or Civil Union Filing Jointly

0 41,050 0.00 3.60% 0

41,050 75,000 1,478.00 7.20% 41,050

TAXABLE INCOME UNDER $75,000 USE THE TAX TABLES

75,000 106,000 3,922.00 7.20% 75,000

106,000 171,650 6,154.00 8.50% 106,000

171,650 336,550 11,734.00 9.00% 171,650

336,550 - 26,575.00 9.50% 336,550

If VT Taxable But Not VT Base Plus of the

Income is Over Over Tax is amount over

Schedule Z

Use if your filing status is:

Head of Household

0 - 1,000

0 100 0 0 0 0

100 200 5 5 5 5

200 300 9 9 9 9

300 400 13 13 13 13

400 500 16 16 16 16

500 600 20 20 20 20

600 700 23 23 23 23

700 800 27 27 27 27

800 900 31 31 31 31

900 1,000 34 34 34 34

1,000

1,000 1,100 38 38 38 38

1,100 1,200 41 41 41 41

1,200 1,300 45 45 45 45

1,300 1,400 49 49 49 49

1,400 1,500 52 52 52 52

1,500 1,600 56 56 56 56

1,600 1,700 59 59 59 59

1,700 1,800 63 63 63 63

1,800 1,900 67 67 67 67

1,900 2,000 70 70 70 70

2,000

2,000 2,100 74 74 74 74

2,100 2,200 77 77 77 77

2,200 2,300 81 81 81 81

2,300 2,400 85 85 85 85

2,400 2,500 88 88 88 88

2,500 2,600 92 92 92 92

2,600 2,700 95 95 95 95

2,700 2,800 99 99 99 99

2,800 2,900 103 103 103 103

2,900 3,000 106 106 106 106

3,000

3,000 3,100 110 110 110 110

3,100 3,200 113 113 113 113

3,200 3,300 117 117 117 117

3,300 3,400 121 121 121 121

3,400 3,500 124 124 124 124

3,500 3,600 128 128 128 128

3,600 3,700 131 131 131 131

3,700 3,800 135 135 135 135

3,800 3,900 139 139 139 139

3,900 4,000 142 142 142 142

4,000

4,000 4,100 146 146 146 146

4,100 4,200 149 149 149 149

4,200 4,300 153 153 153 153

4,300 4,400 157 157 157 157

4,400 4,500 160 160 160 160

4,500 4,600 164 164 164 164

4,600 4,700 167 167 167 167

4,700 4,800 171 171 171 171

4,800 4,900 175 175 175 175

4,900 5,000 178 178 178 178

5,000

5,000 5,100 182 182 182 182

5,100 5,200 185 185 185 185

5,200 5,300 189 189 189 189

5,300 5,400 193 193 193 193

5,400 5,500 196 196 196 196

5,500 5,600 200 200 200 200

5,600 5,700 203 203 203 203

5,700 5,800 207 207 207 207

5,800 5,900 211 211 211 211

5,900 6,000 214 214 214 214

6,000

6,000 6,100 218 218 218 218

6,100 6,200 221 221 221 221

6,200 6,300 225 225 225 225

6,300 6,400 229 229 229 229

6,400 6,500 232 232 232 232

6,500 6,600 236 236 236 236

6,600 6,700 239 239 239 239

6,700 6,800 243 243 243 243

6,800 6,900 247 247 247 247

6,900 7,000 250 250 250 250

7,000

7,000 7,100 254 254 254 254

7,100 7,200 257 257 257 257

7,200 7,300 261 261 261 261

7,300 7,400 265 265 265 265

7,400 7,500 268 268 268 268

7,500 7,600 272 272 272 272

7,600 7,700 275 275 275 275

7,700 7,800 279 279 279 279

7,800 7,900 283 283 283 283

7,900 8,000 286 286 286 286

8,000

8,000 8,100 290 290 290 290

8,100 8,200 293 293 293 293

8,200 8,300 297 297 297 297

8,300 8,400 301 301 301 301

8,400 8,500 304 304 304 304

8,500 8,600 308 308 308 308

8,600 8,700 311 311 311 311

8,700 8,800 315 315 315 315

8,800 8,900 319 319 319 319

8,900 9,000 322 322 322 322

9,000

9,000 9,100 326 326 326 326

9,100 9,200 329 329 329 329

9,200 9,300 333 333 333 333

9,300 9,400 337 337 337 337

9,400 9,500 340 340 340 340

9,500 9,600 344 344 344 344

9,600 9,700 347 347 347 347

9,700 9,800 351 351 351 351

9,800 9,900 355 355 355 355

9,900 10,000 358 358 358 358

10,000

10,000 10,100 362 362 362 362

10,100 10,200 365 365 365 365

10,200 10,300 369 369 369 369

10,300 10,400 373 373 373 373

10,400 10,500 376 376 376 376

10,500 10,600 380 380 380 380

10,600 10,700 383 383 383 383

10,700 10,800 387 387 387 387

10,800 10,900 391 391 391 391

10,900 11,000 394 394 394 394

11,000

11,000 11,100 398 398 398 398

11,100 11,200 401 401 401 401

11,200 11,300 405 405 405 405

11,300 11,400 409 409 409 409

11,400 11,500 412 412 412 412

11,500 11,600 416 416 416 416

11,600 11,700 419 419 419 419

11,700 11,800 423 423 423 423

11,800 11,900 427 427 427 427

11,900 12,000 430 430 430 430

12,000

12,000 12,100 434 434 434 434

12,100 12,200 437 437 437 437

12,200 12,300 441 441 441 441

12,300 12,400 445 445 445 445

12,400 12,500 448 448 448 448

12,500 12,600 452 452 452 452

12,600 12,700 455 455 455 455

12,700 12,800 459 459 459 459

12,800 12,900 463 463 463 463

12,900 13,000 466 466 466 466

13,000

13,000 13,100 470 470 470 470

13,100 13,200 473 473 473 473

13,200 13,300 477 477 477 477

13,300 13,400 481 481 481 481

13,400 13,500 484 484 484 484

13,500 13,600 488 488 488 488

13,600 13,700 491 491 491 491

13,700 13,800 495 495 495 495

13,800 13,900 499 499 499 499

13,900 14,000 502 502 502 502

14,000

14,000 14,100 506 506 506 506

14,100 14,200 509 509 509 509

14,200 14,300 513 513 513 513

14,300 14,400 517 517 517 517

14,400 14,500 520 520 520 520

14,500 14,600 524 524 524 524

14,600 14,700 527 527 527 527

14,700 14,800 531 531 531 531

14,800 14,900 535 535 535 535

14,900 15,000 538 538 538 538

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

* This column also applies to qualifying widow(er) and civil union filing jointly status

** This column also applies to civil union filing separately status

2006 VT Tax Tables

VT tax is based on 24% of the Federal tax in effect for Jan. 1 - Jun. 30, 2001 (pre-Federal tax cut).

51

15,000

15,000 15,100 542 542 542 542

15,100 15,200 545 545 545 545

15,200 15,300 549 549 549 549

15,300 15,400 553 553 553 553

15,400 15,500 556 556 556 556

15,500 15,600 560 560 560 560

15,600 15,700 563 563 563 563

15,700 15,800 567 567 567 567

15,800 15,900 571 571 571 571

15,900 16,000 574 574 574 574

16,000

16,000 16,100 578 578 578 578

16,100 16,200 581 581 581 581

16,200 16,300 585 585 585 585

16,300 16,400 589 589 589 589

16,400 16,500 592 592 592 592

16,500 16,600 596 596 596 596

16,600 16,700 599 599 599 599

16,700 16,800 603 603 603 603

16,800 16,900 607 607 607 607

16,900 17,000 610 610 610 610

17,000

17,000 17,100 614 614 614 614

17,100 17,200 617 617 617 617

17,200 17,300 621 621 621 621

17,300 17,400 625 625 625 625

17,400 17,500 628 628 628 628

17,500 17,600 632 632 632 632

17,600 17,700 635 635 635 635

17,700 17,800 639 639 639 639

17,800 17,900 643 643 643 643

17,900 18,000 646 646 646 646

18,000

18,000 18,100 650 650 650 650

18,100 18,200 653 653 653 653

18,200 18,300 657 657 657 657

18,300 18,400 661 661 661 661

18,400 18,500 664 664 664 664

18,500 18,600 668 668 668 668

18,600 18,700 671 671 671 671

18,700 18,800 675 675 675 675

18,800 18,900 679 679 679 679

18,900 19,000 682 682 682 682

19,000

19,000 19,100 686 686 686 686

19,100 19,200 689 689 689 689

19,200 19,300 693 693 693 693

19,300 19,400 697 697 697 697

19,400 19,500 700 700 700 700

19,500 19,600 704 704 704 704

19,600 19,700 707 707 707 707

19,700 19,800 711 711 711 711

19,800 19,900 715 715 715 715

19,900 20,000 718 718 718 718

20,000

20,000 20,100 722 722 722 722

20,100 20,200 725 725 725 725

20,200 20,300 729 729 729 729

20,300 20,400 733 733 733 733

20,400 20,500 736 736 736 736

20,500 20,600 740 740 740 740

20,600 20,700 743 743 743 743

20,700 20,800 747 747 747 747

20,800 20,900 751 751 751 751

20,900 21,000 754 754 754 754

21,000

21,000 21,100 758 758 758 758

21,100 21,200 761 761 761 761

21,200 21,300 765 765 765 765

21,300 21,400 769 769 769 769

21,400 21,500 772 772 772 772

21,500 21,600 776 776 776 776

21,600 21,700 779 779 779 779

21,700 21,800 783 783 783 783

21,800 21,900 787 787 787 787

21,900 22,000 790 790 790 790

22,000

22,000 22,100 794 794 794 794

22,100 22,200 797 797 797 797

22,200 22,300 801 801 801 801

22,300 22,400 805 805 805 805

22,400 22,500 808 808 808 808

22,500 22,600 812 812 812 812

22,600 22,700 815 815 815 815

22,700 22,800 819 819 819 819

22,800 22,900 823 823 823 823

22,900 23,000 826 826 826 826

23,000

23,000 23,100 830 830 830 830

23,100 23,200 833 833 833 833

23,200 23,300 837 837 837 837

23,300 23,400 841 841 841 841

23,400 23,500 844 844 844 844

23,500 23,600 848 848 848 848

23,600 23,700 851 851 851 851

23,700 23,800 855 855 855 855

23,800 23,900 859 859 859 859

23,900 24,000 862 862 862 862

24,000

24,000 24,100 866 866 866 866

24,100 24,200 869 869 869 869

24,200 24,300 873 873 873 873

24,300 24,400 877 877 877 877

24,400 24,500 880 880 880 880

24,500 24,600 884 884 884 884

24,600 24,700 887 887 887 887

24,700 24,800 891 891 891 891

24,800 24,900 895 895 895 895

24,900 25,000 898 898 898 898

25,000

25,000 25,100 902 902 902 902

25,100 25,200 905 905 905 905

25,200 25,300 909 909 909 909

25,300 25,400 913 913 913 913

25,400 25,500 916 916 916 916

25,500 25,600 920 920 920 920

25,600 25,700 923 923 926 923

25,700 25,800 927 927 933 927

25,800 25,900 931 931 940 931

25,900 26,000 934 934 947 934

26,000

26,000 26,100 938 938 954 938

26,100 26,200 941 941 962 941

26,200 26,300 945 945 969 945

26,300 26,400 949 949 976 949

26,400 26,500 952 952 983 952

26,500 26,600 956 956 990 956

26,600 26,700 959 959 998 959

26,700 26,800 963 963 1005 963

26,800 26,900 967 967 1012 967

26,900 27,000 970 970 1019 970

27,000

27,000 27,100 974 974 1026 974

27,100 27,200 977 977 1034 977

27,200 27,300 981 981 1041 981

27,300 27,400 985 985 1048 985

27,400 27,500 988 988 1055 988

27,500 27,600 992 992 1062 992

27,600 27,700 995 995 1070 995

27,700 27,800 999 999 1077 999

27,800 27,900 1003 1003 1084 1003

27,900 28,000 1006 1006 1091 1006

28,000

28,000 28,100 1010 1010 1098 1010

28,100 28,200 1013 1013 1106 1013

28,200 28,300 1017 1017 1113 1017

28,300 28,400 1021 1021 1120 1021

28,400 28,500 1024 1024 1127 1024

28,500 28,600 1028 1028 1134 1028

28,600 28,700 1031 1031 1142 1031

28,700 28,800 1035 1035 1149 1035

28,800 28,900 1039 1039 1156 1039

28,900 29,000 1042 1042 1163 1042

29,000

29,000 29,100 1046 1046 1170 1046

29,100 29,200 1049 1049 1178 1049

29,200 29,300 1053 1053 1185 1053

29,300 29,400 1057 1057 1192 1057

29,400 29,500 1060 1060 1199 1060

29,500 29,600 1064 1064 1206 1064

29,600 29,700 1067 1067 1214 1067

29,700 29,800 1071 1071 1221 1071

29,800 29,900 1075 1075 1228 1075

29,900 30,000 1078 1078 1235 1078

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

* This column also applies to qualifying widow(er) and civil union filing jointly status

** This column also applies to civil union filing separately status

52

30,000

30,000 30,100 1082 1082 1242 1082

30,100 30,200 1085 1085 1250 1085

30,200 30,300 1089 1089 1257 1089

30,300 30,400 1093 1093 1264 1093

30,400 30,500 1096 1096 1271 1096

30,500 30,600 1100 1100 1278 1100

30,600 30,700 1103 1103 1286 1103

30,700 30,800 1110 1107 1293 1107

30,800 30,900 1117 1111 1300 1111

30,900 31,000 1125 1114 1307 1114

31,000

31,000 31,100 1132 1118 1314 1118

31,100 31,200 1139 1121 1322 1121

31,200 31,300 1146 1125 1329 1125

31,300 31,400 1153 1129 1336 1129

31,400 31,500 1161 1132 1343 1132

31,500 31,600 1168 1136 1350 1136

31,600 31,700 1175 1139 1358 1139

31,700 31,800 1182 1143 1365 1143

31,800 31,900 1189 1147 1372 1147

31,900 32,000 1197 1150 1379 1150

32,000

32,000 32,100 1204 1154 1386 1154

32,100 32,200 1211 1157 1394 1157

32,200 32,300 1218 1161 1401 1161

32,300 32,400 1225 1165 1408 1165

32,400 32,500 1233 1168 1415 1168

32,500 32,600 1240 1172 1422 1172

32,600 32,700 1247 1175 1430 1175

32,700 32,800 1254 1179 1437 1179

32,800 32,900 1261 1183 1444 1183

32,900 33,000 1269 1186 1451 1186

33,000

33,000 33,100 1276 1190 1458 1190

33,100 33,200 1283 1193 1466 1193

33,200 33,300 1290 1197 1473 1197

33,300 33,400 1297 1201 1480 1201

33,400 33,500 1305 1204 1487 1204

33,500 33,600 1312 1208 1494 1208

33,600 33,700 1319 1211 1502 1211

33,700 33,800 1326 1215 1509 1215

33,800 33,900 1333 1219 1516 1219

33,900 34,000 1341 1222 1523 1222

34,000

34,000 34,100 1348 1226 1530 1226

34,100 34,200 1355 1229 1538 1229

34,200 34,300 1362 1233 1545 1233

34,300 34,400 1369 1237 1552 1237

34,400 34,500 1377 1240 1559 1240

34,500 34,600 1384 1244 1566 1244

34,600 34,700 1391 1247 1574 1247

34,700 34,800 1398 1251 1581 1251

34,800 34,900 1405 1255 1588 1255

34,900 35,000 1413 1258 1595 1258

35,000

35,000 35,100 1420 1262 1602 1262

35,100 35,200 1427 1265 1610 1265

35,200 35,300 1434 1269 1617 1269

35,300 35,400 1441 1273 1624 1273

35,400 35,500 1449 1276 1631 1276

35,500 35,600 1456 1280 1638 1280

35,600 35,700 1463 1283 1646 1283

35,700 35,800 1470 1287 1653 1287

35,800 35,900 1477 1291 1660 1291

35,900 36,000 1485 1294 1667 1294

36,000

36,000 36,100 1492 1298 1674 1298

36,100 36,200 1499 1301 1682 1301

36,200 36,300 1506 1305 1689 1305

36,300 36,400 1513 1309 1696 1309

36,400 36,500 1521 1312 1703 1312

36,500 36,600 1528 1316 1710 1316

36,600 36,700 1535 1319 1718 1319

36,700 36,800 1542 1323 1725 1323

36,800 36,900 1549 1327 1732 1327

36,900 37,000 1557 1330 1739 1330

37,000

37,000 37,100 1564 1334 1746 1334

37,100 37,200 1571 1337 1754 1337

37,200 37,300 1578 1341 1761 1341

37,300 37,400 1585 1345 1768 1345

37,400 37,500 1593 1348 1775 1348

37,500 37,600 1600 1352 1782 1352

37,600 37,700 1607 1355 1790 1355

37,700 37,800 1614 1359 1797 1359

37,800 37,900 1621 1363 1804 1363

37,900 38,000 1629 1366 1811 1366

38,000

38,000 38,100 1636 1370 1818 1370

38,100 38,200 1643 1373 1826 1373

38,200 38,300 1650 1377 1833 1377

38,300 38,400 1657 1381 1840 1381

38,400 38,500 1665 1384 1847 1384

38,500 38,600 1672 1388 1854 1388

38,600 38,700 1679 1391 1862 1391

38,700 38,800 1686 1395 1869 1395

38,800 38,900 1693 1399 1876 1399

38,900 39,000 1701 1402 1883 1402

39,000

39,000 39,100 1708 1406 1890 1406

39,100 39,200 1715 1409 1898 1409

39,200 39,300 1722 1413 1905 1413

39,300 39,400 1729 1417 1912 1417

39,400 39,500 1737 1420 1919 1420

39,500 39,600 1744 1424 1926 1424

39,600 39,700 1751 1427 1934 1427

39,700 39,800 1758 1431 1941 1431

39,800 39,900 1765 1435 1948 1435

39,900 40,000 1773 1438 1955 1438

40,000

40,000 40,100 1780 1442 1962 1442

40,100 40,200 1787 1445 1970 1445

40,200 40,300 1794 1449 1977 1449

40,300 40,400 1801 1453 1984 1453

40,400 40,500 1809 1456 1991 1456

40,500 40,600 1816 1460 1998 1460

40,600 40,700 1823 1463 2006 1463

40,700 40,800 1830 1467 2013 1467

40,800 40,900 1837 1471 2020 1471

40,900 41,000 1845 1474 2027 1474

41,000

41,000 41,100 1852 1478 2034 1478

41,100 41,200 1859 1481 2042 1485

41,200 41,300 1866 1485 2049 1492

41,300 41,400 1873 1489 2056 1500

41,400 41,500 1881 1492 2063 1507

41,500 41,600 1888 1496 2070 1514

41,600 41,700 1895 1499 2078 1521

41,700 41,800 1902 1503 2085 1528

41,800 41,900 1909 1507 2092 1536

41,900 42,000 1917 1510 2099 1543

42,000

42,000 42,100 1924 1514 2106 1550

42,100 42,200 1931 1517 2114 1557

42,200 42,300 1938 1521 2121 1564

42,300 42,400 1945 1525 2128 1572

42,400 42,500 1953 1528 2135 1579

42,500 42,600 1960 1532 2142 1586

42,600 42,700 1967 1535 2150 1593

42,700 42,800 1974 1539 2157 1600

42,800 42,900 1981 1543 2164 1608

42,900 43,000 1989 1546 2171 1615

43,000

43,000 43,100 1996 1550 2178 1622

43,100 43,200 2003 1553 2186 1629

43,200 43,300 2010 1557 2193 1636

43,300 43,400 2017 1561 2200 1644

43,400 43,500 2025 1564 2207 1651

43,500 43,600 2032 1568 2214 1658

43,600 43,700 2039 1571 2222 1665

43,700 43,800 2046 1575 2229 1672

43,800 43,900 2053 1579 2236 1680

43,900 44,000 2061 1582 2243 1687

44,000

44,000 44,100 2068 1586 2250 1694

44,100 44,200 2075 1589 2258 1701

44,200 44,300 2082 1593 2265 1708

44,300 44,400 2089 1597 2272 1716

44,400 44,500 2097 1600 2279 1723

44,500 44,600 2104 1604 2286 1730

44,600 44,700 2111 1607 2294 1737

44,700 44,800 2118 1611 2301 1744

44,800 44,900 2125 1615 2308 1752

44,900 45,000 2133 1618 2315 1759

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

* This column also applies to qualifying widow(er) and civil union filing jointly status

** This column also applies to civil union filing separately status

53

45,000

45,000 45,100 2140 1622 2322 1766

45,100 45,200 2147 1625 2330 1773

45,200 45,300 2154 1629 2337 1780

45,300 45,400 2161 1633 2344 1788

45,400 45,500 2169 1636 2351 1795

45,500 45,600 2176 1640 2358 1802

45,600 45,700 2183 1643 2366 1809

45,700 45,800 2190 1647 2373 1816

45,800 45,900 2197 1651 2380 1824

45,900 46,000 2205 1654 2387 1831

46,000

46,000 46,100 2212 1658 2394 1838

46,100 46,200 2219 1661 2402 1845

46,200 46,300 2226 1665 2409 1852

46,300 46,400 2233 1669 2416 1860

46,400 46,500 2241 1672 2423 1867

46,500 46,600 2248 1676 2430 1874

46,600 46,700 2255 1679 2438 1881

46,700 46,800 2262 1683 2445 1888

46,800 46,900 2269 1687 2452 1896

46,900 47,000 2277 1690 2459 1903

47,000

47,000 47,100 2284 1694 2466 1910

47,100 47,200 2291 1697 2474 1917

47,200 47,300 2298 1701 2481 1924

47,300 47,400 2305 1705 2488 1932

47,400 47,500 2313 1708 2495 1939

47,500 47,600 2320 1712 2502 1946

47,600 47,700 2327 1715 2510 1953

47,700 47,800 2334 1719 2517 1960

47,800 47,900 2341 1723 2524 1968

47,900 48,000 2349 1726 2531 1975

48,000

48,000 48,100 2356 1730 2538 1982

48,100 48,200 2363 1733 2546 1989

48,200 48,300 2370 1737 2553 1996

48,300 48,400 2377 1741 2560 2004

48,400 48,500 2385 1744 2567 2011

48,500 48,600 2392 1748 2574 2018

48,600 48,700 2399 1751 2582 2025

48,700 48,800 2406 1755 2589 2032

48,800 48,900 2413 1759 2596 2040

48,900 49,000 2421 1762 2603 2047

49,000

49,000 49,100 2428 1766 2610 2054

49,100 49,200 2435 1769 2618 2061

49,200 49,300 2442 1773 2625 2068

49,300 49,400 2449 1777 2632 2076

49,400 49,500 2457 1780 2639 2083

49,500 49,600 2464 1784 2646 2090

49,600 49,700 2471 1787 2654 2097

49,700 49,800 2478 1791 2661 2104

49,800 49,900 2485 1795 2668 2112

49,900 50,000 2493 1798 2675 2119

50,000

50,000 50,100 2500 1802 2682 2126

50,100 50,200 2507 1805 2690 2133

50,200 50,300 2514 1809 2697 2140

50,300 50,400 2521 1813 2704 2148

50,400 50,500 2529 1816 2711 2155

50,500 50,600 2536 1820 2718 2162

50,600 50,700 2543 1823 2726 2169

50,700 50,800 2550 1827 2733 2176

50,800 50,900 2557 1831 2740 2184

50,900 51,000 2565 1834 2747 2191

51,000

51,000 51,100 2572 1838 2754 2198

51,100 51,200 2579 1841 2762 2205

51,200 51,300 2586 1847 2769 2212

51,300 51,400 2593 1854 2776 2220

51,400 51,500 2601 1861 2783 2227

51,500 51,600 2608 1868 2790 2234

51,600 51,700 2615 1875 2798 2241

51,700 51,800 2622 1883 2805 2248

51,800 51,900 2629 1890 2812 2256

51,900 52,000 2637 1897 2819 2263

52,000

52,000 52,100 2644 1904 2826 2270

52,100 52,200 2651 1911 2834 2277

52,200 52,300 2658 1919 2841 2284

52,300 52,400 2665 1926 2848 2292

52,400 52,500 2673 1933 2855 2299

52,500 52,600 2680 1940 2862 2306

52,600 52,700 2687 1947 2870 2313

52,700 52,800 2694 1955 2877 2320

52,800 52,900 2701 1962 2884 2328

52,900 53,000 2709 1969 2891 2335

53,000

53,000 53,100 2716 1976 2898 2342

53,100 53,200 2723 1983 2906 2349

53,200 53,300 2730 1991 2913 2356

53,300 53,400 2737 1998 2920 2364

53,400 53,500 2745 2005 2927 2371

53,500 53,600 2752 2012 2934 2378

53,600 53,700 2759 2019 2942 2385

53,700 53,800 2766 2027 2949 2392

53,800 53,900 2773 2034 2956 2400

53,900 54,000 2781 2041 2963 2407

54,000

54,000 54,100 2788 2048 2970 2414

54,100 54,200 2795 2055 2978 2421

54,200 54,300 2802 2063 2985 2428

54,300 54,400 2809 2070 2992 2436

54,400 54,500 2817 2077 2999 2443

54,500 54,600 2824 2084 3006 2450

54,600 54,700 2831 2091 3014 2457

54,700 54,800 2838 2099 3021 2464

54,800 54,900 2845 2106 3028 2472

54,900 55,000 2853 2113 3035 2479

55,000

55,000 55,100 2860 2120 3042 2486

55,100 55,200 2867 2127 3050 2493

55,200 55,300 2874 2135 3057 2500

55,300 55,400 2881 2142 3064 2508

55,400 55,500 2889 2149 3071 2515

55,500 55,600 2896 2156 3078 2522

55,600 55,700 2903 2163 3086 2529

55,700 55,800 2910 2171 3093 2536

55,800 55,900 2917 2178 3100 2544

55,900 56,000 2925 2185 3107 2551

56,000

56,000 56,100 2932 2192 3114 2558

56,100 56,200 2939 2199 3122 2565

56,200 56,300 2946 2207 3129 2572

56,300 56,400 2953 2214 3136 2580

56,400 56,500 2961 2221 3143 2587

56,500 56,600 2968 2228 3150 2594

56,600 56,700 2975 2235 3158 2601

56,700 56,800 2982 2243 3165 2608

56,800 56,900 2989 2250 3172 2616

56,900 57,000 2997 2257 3179 2623

57,000

57,000 57,100 3004 2264 3186 2630

57,100 57,200 3011 2271 3194 2637

57,200 57,300 3018 2279 3201 2644

57,300 57,400 3025 2286 3208 2652

57,400 57,500 3033 2293 3215 2659

57,500 57,600 3040 2300 3222 2666

57,600 57,700 3047 2307 3230 2673

57,700 57,800 3054 2315 3237 2680

57,800 57,900 3061 2322 3244 2688

57,900 58,000 3069 2329 3251 2695

58,000

58,000 58,100 3076 2336 3258 2702

58,100 58,200 3083 2343 3266 2709

58,200 58,300 3090 2351 3273 2716

58,300 58,400 3097 2358 3280 2724

58,400 58,500 3105 2365 3287 2731

58,500 58,600 3112 2372 3294 2738

58,600 58,700 3119 2379 3302 2745

58,700 58,800 3126 2387 3309 2752

58,800 58,900 3133 2394 3316 2760

58,900 59,000 3141 2401 3323 2767

59,000

59,000 59,100 3148 2408 3330 2774

59,100 59,200 3155 2415 3338 2781

59,200 59,300 3162 2423 3345 2788

59,300 59,400 3169 2430 3352 2796

59,400 59,500 3177 2437 3359 2803

59,500 59,600 3184 2444 3366 2810

59,600 59,700 3191 2451 3374 2817

59,700 59,800 3198 2459 3381 2824

59,800 59,900 3205 2466 3388 2832

59,900 60,000 3213 2473 3395 2839

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

* This column also applies to qualifying widow(er) and civil union filing jointly status

** This column also applies to civil union filing separately status

54

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

If TaxableIncome is --- And your filing status is ---

At Least But Less Single Married Married Head of

Than filing filing house-

jointly* sepa- hold

rately**

Then your Vermont Tax is ---

* This column also applies to qualifying widow(er) and civil union filing jointly status

** This column also applies to civil union filing separately status

If your taxable income is $75,000 or more, pleasego to the tax rate schedules.

55

60,000

60,000 60,100 3220 2480 3402 2846

60,100 60,200 3227 2487 3410 2853

60,200 60,300 3234 2495 3417 2860

60,300 60,400 3241 2502 3424 2868

60,400 60,500 3249 2509 3431 2875

60,500 60,600 3256 2516 3438 2882

60,600 60,700 3263 2523 3446 2889

60,700 60,800 3270 2531 3453 2896

60,800 60,900 3277 2538 3460 2904

60,900 61,000 3285 2545 3467 2911

61,000

61,000 61,100 3292 2552 3474 2918

61,100 61,200 3299 2559 3482 2925

61,200 61,300 3306 2567 3489 2932

61,300 61,400 3313 2574 3496 2940

61,400 61,500 3321 2581 3503 2947

61,500 61,600 3328 2588 3510 2954

61,600 61,700 3335 2595 3518 2961

61,700 61,800 3342 2603 3525 2968

61,800 61,900 3349 2610 3532 2976

61,900 62,000 3357 2617 3541 2983

62,000

62,000 62,100 3364 2624 3549 2990

62,100 62,200 3371 2631 3558 2997

62,200 62,300 3378 2639 3566 3004

62,300 62,400 3385 2646 3575 3012

62,400 62,500 3393 2653 3583 3019

62,500 62,600 3400 2660 3592 3026

62,600 62,700 3407 2667 3600 3033

62,700 62,800 3414 2675 3609 3040

62,800 62,900 3421 2682 3617 3048

62,900 63,000 3429 2689 3626 3055

63,000

63,000 63,100 3436 2696 3634 3062

63,100 63,200 3443 2703 3643 3069

63,200 63,300 3450 2711 3651 3076

63,300 63,400 3457 2718 3660 3084

63,400 63,500 3465 2725 3668 3091

63,500 63,600 3472 2732 3677 3098

63,600 63,700 3479 2739 3685 3105

63,700 63,800 3486 2747 3694 3112

63,800 63,900 3493 2754 3702 3120

63,900 64,000 3501 2761 3711 3127

64,000

64,000 64,100 3508 2768 3719 3134

64,100 64,200 3515 2775 3728 3141

64,200 64,300 3522 2783 3736 3148

64,300 64,400 3529 2790 3745 3156

64,400 64,500 3537 2797 3753 3163

64,500 64,600 3544 2804 3762 3170

64,600 64,700 3551 2811 3770 3177

64,700 64,800 3558 2819 3779 3184

64,800 64,900 3565 2826 3787 3192

64,900 65,000 3573 2833 3796 3199

65,000

65,000 65,100 3580 2840 3804 3206

65,100 65,200 3587 2847 3813 3213

65,200 65,300 3594 2855 3821 3220

65,300 65,400 3601 2862 3830 3228

65,400 65,500 3609 2869 3838 3235

65,500 65,600 3616 2876 3847 3242

65,600 65,700 3623 2883 3855 3249

65,700 65,800 3630 2891 3864 3256

65,800 65,900 3637 2898 3872 3264

65,900 66,000 3645 2905 3881 3271

66,000

66,000 66,100 3652 2912 3889 3278

66,100 66,200 3659 2919 3898 3285

66,200 66,300 3666 2927 3906 3292

66,300 66,400 3673 2934 3915 3300

66,400 66,500 3681 2941 3923 3307

66,500 66,600 3688 2948 3932 3314

66,600 66,700 3695 2955 3940 3321

66,700 66,800 3702 2963 3949 3328

66,800 66,900 3709 2970 3957 3336

66,900 67,000 3717 2977 3966 3343

67,000

67,000 67,100 3724 2984 3974 3350

67,100 67,200 3731 2991 3983 3357

67,200 67,300 3738 2999 3991 3364

67,300 67,400 3745 3006 4000 3372

67,400 67,500 3753 3013 4008 3379

67,500 67,600 3760 3020 4017 3386

67,600 67,700 3767 3027 4025 3393

67,700 67,800 3774 3035 4034 3400

67,800 67,900 3781 3042 4042 3408

67,900 68,000 3789 3049 4051 3415

68,000

68,000 68,100 3796 3056 4059 3422

68,100 68,200 3803 3063 4068 3429

68,200 68,300 3810 3071 4076 3436

68,300 68,400 3817 3078 4085 3444

68,400 68,500 3825 3085 4093 3451

68,500 68,600 3832 3092 4102 3458

68,600 68,700 3839 3099 4110 3465

68,700 68,800 3846 3107 4119 3472

68,800 68,900 3853 3114 4127 3480

68,900 69,000 3861 3121 4136 3487

69,000

69,000 69,100 3868 3128 4144 3494

69,100 69,200 3875 3135 4153 3501

69,200 69,300 3882 3143 4161 3508

69,300 69,400 3889 3150 4170 3516

69,400 69,500 3897 3157 4178 3523

69,500 69,600 3904 3164 4187 3530

69,600 69,700 3911 3171 4195 3537

69,700 69,800 3918 3179 4204 3544

69,800 69,900 3925 3186 4212 3552

69,900 70,000 3933 3193 4221 3559

70,000

70,000 70,100 3940 3200 4229 3566

70,100 70,200 3947 3207 4238 3573

70,200 70,300 3954 3215 4246 3580

70,300 70,400 3961 3222 4255 3588

70,400 70,500 3969 3229 4263 3595

70,500 70,600 3976 3236 4272 3602

70,600 70,700 3983 3243 4280 3609

70,700 70,800 3990 3251 4289 3616

70,800 70,900 3997 3258 4297 3624

70,900 71,000 4005 3265 4306 3631

71,000

71,000 71,100 4012 3272 4314 3638

71,100 71,200 4019 3279 4323 3645

71,200 71,300 4026 3287 4331 3652

71,300 71,400 4033 3294 4340 3660

71,400 71,500 4041 3301 4348 3667

71,500 71,600 4048 3308 4357 3674

71,600 71,700 4055 3315 4365 3681

71,700 71,800 4062 3323 4374 3688

71,800 71,900 4069 3330 4382 3696

71,900 72,000 4077 3337 4391 3703

72,000

72,000 72,100 4084 3344 4399 3710

72,100 72,200 4091 3351 4408 3717

72,200 72,300 4098 3359 4416 3724

72,300 72,400 4105 3366 4425 3732

72,400 72,500 4113 3373 4433 3739

72,500 72,600 4120 3380 4442 3746

72,600 72,700 4127 3387 4450 3753

72,700 72,800 4134 3395 4459 3760

72,800 72,900 4141 3402 4467 3768

72,900 73,000 4149 3409 4476 3775

73,000

73,000 73,100 4156 3416 4484 3782

73,100 73,200 4163 3423 4493 3789

73,200 73,300 4170 3431 4501 3796

73,300 73,400 4177 3438 4510 3804

73,400 73,500 4185 3445 4518 3811

73,500 73,600 4192 3452 4527 3818

73,600 73,700 4199 3459 4535 3825

73,700 73,800 4206 3467 4544 3832

73,800 73,900 4213 3474 4552 3840

73,900 74,000 4221 3481 4561 3847

74,000

74,000 74,100 4228 3488 4569 3854

74,100 74,200 4235 3495 4578 3861

74,200 74,300 4243 3503 4586 3868

74,300 74,400 4252 3510 4595 3876

74,400 74,500 4260 3517 4603 3883

74,500 74,600 4269 3524 4612 3890

74,600 74,700 4277 3531 4620 3897

74,700 74,800 4286 3539 4629 3904

74,800 74,900 4294 3546 4637 3912

74,900 75,000 4303 3553 4646 3919

Adjusted Gross Income. . . . . . . . . . . . . . . . . . . . . 5, 6

Adjusted VT Income Tax. . . . . . . . . . . . . . . . . . . . 5, 7

Alimony . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,49

Amending or Correcting VT Return Information . . 5

Americans with Disabilities Credit . . . . . . . . . . 5,44

Angel Venture Capital Credit . . . . . . Front cover, 45

Capital Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Child & Dependent Care Credit . . . . . . . . . . . . . . 8, 9

Child Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Children's Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . 8

Civil Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Commercial Film Income. . . . . . . . . . . . . . . . . . . 5,45

Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,9,10

Deceased Taxpayer . . . . . . . . . . . . . . . . 6, 28, 32, 47

Declaration of VT Homestead . . . . . . . . . . . . . 27, 28

Developmentally Disabled Person, VT State

payments to family for . . . . . . . . . . . . . 5, 44, 49

Difficulty of Care Payments. . . . Front cover, 44, 49

Domicile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Early Withdrawal Penalty . . . . . . . . . . . . . . . . . . . 44

Earned Income Tax Credit. . . . . . . . . . . . . . . . . . 8, 10

Estimated Income Tax Payments . . . . . . . . . . 3, 8, 9

Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Extension of Time to File Income Return . . . . . . . . 3

Farm Income Averaging . . . . . . . . . . . . . . . . . . . 9, 18

Federal Student Loan Deduction . . . . . . . . . . . . . . 44

Federal Employment Opportunity Credit . . . . . 5, 44

Federal Return for VT Purposes Only (recomputed)

5, 6

Federal Self-Employment Deductions . . . . . . 44, 50

Federal Tax Changes . . . . . . . . . . . . . . . . . . . . . . . . . 5

Fee Basis Government Officials . . . . . . . . . . . . . . 44

Filing Check List. . . On Web (www.state.vt.us/tax)

Filing Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Filing Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Financial Difficulties (Payment Plan) . . . . . . . . . . . 4

Forms/Instructions FORM INSTRUCTIONS

IN-111. . . . . . . . . . . . . . . 13 . . . . . . . . . . . . . . . . . 6

IN-112. . . . . . . . . . . . . . . 17 . . . . . . . . . . . . . . . . . 9

IN-113. . . . . . . . . . . . . . . 21 . . . . . . . . . . . . . . . . 10

IN-116Attached to green-print envelope . . . . . . .

IN-119 . . . . . . . . . . . . . . 25 . . . . . . . . . . . . . . . . 45

HS-122. . . . . . . . . . . . . . 27 . . . . . . . . . . . . . 28,45

PR-141 . . . . . . . . . . . . . . 31 . . . . . . . . . . . . . . . . 32

HI-144 . . . . . . . . . . . . . . 35 . . . . . . . . . . . . . . . . 49

Gifts as Household Income. . . . . . . . . . . . . . . . . . . 49

Homesharing Agreement . . . . . . . . . . . . . . . . . . . . 49

Household Income. . . . . . . . . . . . . . . . . . . . . . . . . . 49

Household Living Expenses . . . . . . . . . . . . . . . . . . 49

Income Tax Paid to Another State or Canadian

Province . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 9

Injured Spouse Claim . . . . . . . . . . . . . . . . . . . . . . . . 4

IRA, Keogh, SEP, SIMPLE . . . . . . . . . . . . . . . . . . . . 44

Jury Duty Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Label . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Landlord Certificate, unable to obtain . . . . . . . . . 32

Late Declaration of VT Homestead . . . . . . . . . . . . 46

Late Filing Penalties . . . . . . . . . . . . . . . . . . . . . 3, 46

Lifeline Application . . . . . . . . . . . . . . . . . . . . . . . . . 41

Medical Savings Accounts. . . . . . . . . . . . . . . . . . . 44

Military Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 44

Moving Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 44

National Guard . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Net Operating Loss . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Nongame Wildlife Fund . . . . . . . . . . . . . . . . . . . . . . 8

Nonprofit Mobile Home Park. . . . . . . . . . . . . . 28, 47

Nonresident Income . . . . . . . . . . . . . . . . . . . . . . . . . 5

Nonresident Estimated Payment by Entity. . . . . . . 8

Nonresident Withholding, Sale of VT Real Estate . 8

Offset of Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Part-Year Resident Income . . . . . . . . . . . . . . . . . . . . 5

Payment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 4, 9, 46

Pharmacy Program Application. . . . . . . . . . . . . . . 39

Postage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Property Tax - Paying property taxes with . . . Front

cover, 9

Property Tax Adjustment Definitions . . . . . . . . . . 46

Property Tax Adjustment Special Situations . . . . 47

Property Tax Adjustment Worksheet . . . . . . . . . . 43

Property Tax Adjustment Ownership Situations . 47

Railroad Retirement . . . . . . . . . . . . . . . . . . . . . . . . 44

Recomputed Federal Income Tax Return . . . . . . 5, 6

Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 8

Refund Status Tracking . . . . . . . . Inside Front Cover

Renter Rebate . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 31

Residency, Definition of . . . . . . . . . . . . . . . . . . . . . . 5

Requests for Additional Information . . . . . . . . . . . . 3

Resident, Definition of . . . . . . . . . . . . . . . . . . . . . . . 5

Resident Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Rounding of entries . . . . . . . . . . . . . . . . . . . . . . . . . . 3

School District Code Table . . . . . . . . . . . . . . . . . . . 11

State & Local Obligations. . . . . . . . . . . . . . . . . . . 6, 9

Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25, 45

Tax Due. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 9

Tax Tables & Rate Schedule for VT . . . . . . . . . . . . 50

Taxpayer Assistance Information Inside Front Cover

Timely Filing . . . . . . . . . . . . . . . . . . . . . 3, 28, 32, 46

U.S. Military Reserves . . . . . . . . . . . . . . . . . . . . . . 44

U.S. Government Interest Income . . . . . . . . . . . . 6, 7

Use Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

VT Campaign Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 8

VT Higher Education Investment Credit Front cover,

25, 45

VT Tax - additions and subtractions to . . . . . . . . 7, 9

VT Taxable Income . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Whole Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

VERMONT DEPARTMENT OF TAXES133 STATE STREET

MONTPELIER VT 05633-1401

Index